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Endangered expansion

If the PP blocks the path of the deficit will punish for no reason the citizens

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Endangered expansion

The state budget for 2019 is undoubtedly first major parliamentary confrontation in which Pedro Sánchez and his government will demonstrate ir ability to do politics with 85 deputies. The Minister of Finance, María Jesús Montero, yesterday presented so-called expenditure ceiling for next year's accounts (125,064,000,000, 5.23 billion more than top in 2018) and Minister of Economy, Nadia Calviño, deployed new scenario of deficit reduction Which, in short, allows public adjustment to be postponed by about 6 billion.

Both rise of spending ceiling and relaxation of deficit should facilitate elaboration of a budget with sufficient leeway to meet minimum social improvements. The advanced macroeconomic policy yesterday presents an effort, almost maximum that can be made, to draw up a budget for next year that is better than current one and that takes into account, among or factors that are often forgotten, probable point of a slight Economic slowdown.

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But it will be difficult to circumvent weakness of a parliamentary minority so dependent on agreements with or political forces that demand resources that are difficult to extract in an adjustment environment. We can demand to increase spending by 15 billion, which is out of possibility of stability, unless one wants to govern with backs of debt financiers. On or hand, PP has already telegraphed its intention to orchestrate a scuffle opposition — persistent calls to responsibility launched by PP governments to opposition should be remembered — on Thursday's Fiscal and Financial Policy Council. The autonomy of PP rejected new distribution of deficit for 2019 although it allowed its governments a greater margin of deficit and of promises of Minister Montero to lengn deadlines of maturity of autonomic debt.

If PP does not approve new path of deficit in Senate ( proposal does not return to Congress), Spanish economy would be in a paradoxical and very uncomfortable situation before European authorities. The government would have a margin of deficit, necessary to secure pension commitments and or social improvements, which it could not make effective because it is blocked by position of first opposition party. It would have to draw up a budget with already-approved deficit criteria (1.8% on GDP) and impose a new adjustment on all citizens. The justification of barons of PP to reject relaxation of autonomic deficit — "It is debt" — is no longer arbitrary; After all, y have been financing debt for years (irs or state's) without having hirto shown any qualms.

If new address of PP, which is elected today, decides to follow a policy of scorched earth because it considers that it is appropriate to its interests, little has to be said, except to regret it. But that decision will expel party from political negotiation and place it in an unbelievable position when it reclaims state attitudes to or parties.

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