Spain | Budgets, what budgets?

Summary

There are currently seven autonomous regions of Spain without a budget (rolled over), in territories where the population represents 43% of the total in Spain. In addition, the central government is still working with the 2023 budget.

Key points

• Key points:
• For now, the effects of this uncertainty have not fed through to economic activity or to the funding cost for the Spanish economy.
• However, as last week’s events in Parliament showed, this is not without consequences and may ultimately lead to the non-fulfilment of commitments and heightened social unrest.
• Moving forward, it is essential to anticipate the headwinds in store. This is particularly important as of this year, as a long and steady process of fiscal consolidation committed to the European Union is now underway.
• Spain needs to overcome the prevailing uncertainty as soon as possible, given the ambitious fiscal consolidation process that lies ahead, coupled with the risk of an economic downturn.

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