Spain’s 2017 budget is “broadly” in line with EU deficit rules, but the government should be ready to take precautionary curative measures, according to the European Commission.
The EU budget deficit limit is set at 3% of gross domestic product (GDP), something which Spain has consistently exceeded since the 2008 financial crash.
The 2017 deficit, the difference of loss between government income and spending, was initially set at 3.1% of GDP but Spain would miss this target by 0.2%, the Commission states.
A similar instance would occur in 2018 where the deficit would be 2.8% of GDP not 2.2%. The 2016 deficit is expected to be around 4.6%.
“Overall, the Commission considers Spain’s draft budgetary plan to be broadly compliant with the provisions of the Stability and Growth Pact,” a statement said.
“It invites the authorities to stand ready to take further measures should fiscal developments indicate a heightened risk of not fulfilling the … requirements.”
Tags: Spain 2017 Budget, Spain's GDP