Sun. Feb 24th, 2019

The Government approves the path of stability as a previous step to the PGE of 2019 - The Province

The Government approves the path of stability as a previous step to the PGE of 2019 - The Province

TheMinister councilhe plans this Fridayevaluate the remission to the Cortes of the stability path, with the same objectives of deficit and debtalready presented in July and that were rejected by Congress, as a previous step to the presentation of the draftState's general budgetsfor 2019.

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Sources ofTreasuryThey have explained to Europa Press that this is a mere formality and a prerequisite to present the PGE of 2019, whichthe Executive expects to present mid-Januarywith the deficit targets that are approved at that time, predictably the Government's goal ofMariano Rajoy.

The new attempt of the Government to approve its path of stability, which is accompanied by the limit of non-financial expenditure (spending ceiling),fixed at 125,064 million euros, 4.4% more, also seeks to reinforce the guarantee that neither PP nor Cs will use the Congress Bureau to block new public accounts, as indicated by the same sources.

The Executive has already advanced that for this year 2018 estimated adeficit of 2.7% of GDP, five tenths above the objective committed toBrussels, and in July updated the path ofbudget stabilityraising thedeficit targets to 1.8% by 2019, five tenths more than the forecast of the Government of Rajoy, to 1.1% in 2020 and four tenths in 2021, compared to three tenths and the surplus, respectively, provided by the Executive of the PP for those years.

But nevertheless,the budget pathraised by the Government ofPedro Sánchez, which tries again to approve now,was rejected at the end of July by Congress, with the votes against PP, Cs, UPN, Asturias Forum, Canary Coalition and Bildu.

TheBudget Stability Lawestablishes that, in case the courts do not approve the ceiling of expenditure, thegovernmentmust return to the Cortes a new agreement in amaximum period of one month, but finally they have passedfour and a half months.

However, its approval is not essential for the approval of a project ofState's general budgetsfor 2019, which the Government plans to present in mid-January with the objective of deficit that is in force at that time, have pointed from the Treasury.

The approval of stability objectives in theMinister councilthis Friday will occur without the approval of thereform of the Stability Law proposed by the PSOEto eliminate the veto of the Senate (in which the PP majority holds) to the path of stability.

The Minister of Finance, María Jesús Montero, has defended on several occasions that the path of stability inherited from the Government of Rajoy is "unreal", both this year and the next, which has had an impact on the need to relax fiscal goals, after having obtained the approval of Brussels.


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