Shooting spending to get out of the crisis will continue to be one of the star policies of this government by 2022, together with the increase in taxes for certain groups. For this, it will be necessary to breach the fiscal rules of deficit and public debt, although this will not be a problem. The European Comission endorses skipping the Stability Pact next year and today the Congress of Deputies also gives its ‘yes’ to the Executive.
María Jesús Montero, Minister of Finance and Public Function, has been in charge of obtaining the support of the Lower House, already tied in advance, to declare that Spain is experiencing “an extraordinary emergency situation” and thus be able to suspend the application of the rules prosecutors. “If in 2020 we dedicate ourselves to fighting the pandemic, and in 2021 we focus on economic and social recovery, the accounts for 2022 aim to consolidate economic growth and advance in the modernization of Spain», Has indicated in the Plenary.
The head of the Treasury has stressed that it is necessary to continue promoting expansionary policies that support the productive fabric, that are a lever for investment and that guarantee fair growth. “It is not about returning to the starting point prior to the pandemic”, has said.
To breach the public deficit and debt targets, the Government hides itself in the fact that the European Commission gives the Member States a wide sleeve to not comply with the fiscal rules next year. A different thing will be already in 2023, when it would return to the standards that are agreed in the coming months, although the countries of the North, the Netherlands, etc. They will not make the easy task of reforming the Stability and Growth Pact in order to know which rules to abide by (if more lax or the same as before).
The minister also explained that they might not be in a position to lower the 3% deficit limit that is set in the current Brussels rules until 2024-2025: “It will be due to that environment, in 2024, if possible, closer to the 2025, when we will be in a position to present a path that resumes that commitment to fiscal consolidation, in the face of the European authorities ”.
Likewise, Montero has informed the Congress on the spending ceiling that the Executive approved a month and a half ago. A new record figure after the symbolic rise that will occur in 2022 to 196,142 million euros, but which already denotes that the Budgets of this coming year will continue on the path of unleashing spending. “The public accounts for 2022 aim to consolidate economic growth and advance on the path of structural modernization of the country, influencing the ecological and technological transition, social and economic justice, gender equality and social and territorial cohesion,” he said. Hacienda in July.
Montero, thinking about the accounts of the next year, has tended the command to the rest of political formations and has indicated that the Government is open to “all the lines of communication to add all the possible agreements”.
Although the suspension of fiscal rules will be carried out, the debate has not been without criticism of the Executive. PP and Vox they have headed the toughest messages. Elvira Rodríguez and Iván Espinosa de los Monteros both called for a return to orthodoxy, although the popular ones finally abstain from their position and the formation of Santiago Abascal does oppose it, as does Foro Asturas.
Both parties have demanded from the Government a plan for fiscal rebalancing, fiscal consolidation, as Airef has been asking for in recent months. The Tax authority has urged the Executive to think already in the medium and long term at the level of deficit and public debt. The Bank of Spain has also requested this plan in different interventions.