Spain will double EU growth but without meeting deficit

European economies continue to show their strength amid a “complex” global landscape. The European Commission published its spring economic forecast on Monday, showing “moderate growth” and “better than expected” for the European Union (EU). According to Brussels’ calculations, the economy of European countries will grow at an average rate of 1% this year and 1.7% in 2024. In the case of Spain, the Community institution gives one lime and the other sand: on the one hand, the forecast that the country’s GDP will double that of the EU progress -1.9% growth this year and 2% in 2024-; And, on the other hand, it indicates that Spain will not meet its objective of reducing the public deficit by 3% for the next year.

The forecasts from Brussels were positively assessed by the Ministry of Economic Affairs, which revised the economic outlook for Spain to the upside. The country will grow five-tenths more than expected in winter and will be “one of the fastest growing” this year, ministry sources said on Monday, which would “allow it to lead growth among the main economies of the euro zone”. . Other positive news is a reduction in inflation, which will remain at 4% this year and 2.7% in 2024. In the European Union, this percentage will increase to 5.8% for 2023 and 2.8% for the coming year.

First Vice President and Minister of Economic Affairs, Nadia Calvino, announced in late April that the stability plan the government sent to Brussels included reducing the deficit to 3% of GDP in 2024, a year ahead of schedule. Is. Overall, the European Commission is skeptical that the country will meet these objectives and puts the Spanish public deficit at 3.3% next year. The percentage would thus exceed the 3% set by the Stability Pact, which will be reactivated next year and includes procedures against member states that do not comply with Brussels’ requirements.

While the European Executive analyzes the plan presented by Spain, Commissioner for the Economy Paolo Gentiloni stressed that the institution’s calculations are based on a scenario in which there is “no change in policies” and insisted that the gap in the budget should be taken into account. Despite the imbalance, forecasts for Spain “are encouraging”. For his part, from the Ministry of Economic Affairs, he stressed that the country would continue to reduce its debt and public deficit “above the European average, continuing the process of fiscal consolidation after the pandemic.”

With the European Union (EU) avoiding a technical recession and moving at a “moderate” pace, eurozone ministers met in Brussels on Monday to discuss the economic outlook for the bloc, the health of the bloc’s banking sector and the Union of Advances in Banking and Capital Markets, among others. The finance holders of the common currency agree that inflation remains “excessive” and that the European Commission is committed to the “coordination” of fiscal and monetary policies.

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