Fiscal Council Warns of Significant Public Deficit Risks
The Fiscal Council has issued a stark warning regarding Spain’s public finances, stating that current policies risk a substantial increase in the national deficit. If trends continue, the country could face a public deficit more than three times larger than initially projected within three years. The Council further cautioned that a worsening global economic crisis could escalate this figure to five times the planned level.
The government’s adherence to the fiscal-structural plan is currently under scrutiny. While compliance was exemplary in 2024, with consumption remaining below forecast, the situation has deteriorated this year. Contributing factors include the recent reform of the pay system, the disbursement of Christmas bonuses, a significant increase in the minimum wage, and unexpectedly high costs associated with long-term care services.
Finance Minister Klemen Boštjančič has urged all budget users to identify opportunities for cost reductions. “They are looking forward to the end of the year,” he stated. The Council emphasizes the need for immediate action to prevent a further widening of the deficit, highlighting the potential consequences if current spending patterns continue.
The risk remains that the deficit will exceed acceptable limits.
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“This is a serious concern that needs immediate attention and a clear plan to address the growing debt.”