The Government's version that the approval of the Budgets for 2021 generates confidence in the markets contrasts with the report that Goldman Sachs, one of the most influential banks in the world, is distributing among its clients.
According to his analysis, to which this newspaper has had access, on what happened in the Spanish Parliament, the coalition government chaired by
is assuming "new risks" for the Spanish economy by "
not having been able to overcome disagreements with the opposition parties
-PP, Vox and Ciudadanos- and turn towards regional parties to get the parliamentary support it needs. "
"the coalition seems to have linked its fate to the support of regional parties," he
And he considers it problematic, because Sánchez "has made the regional authorities fundamental in the application of a relevant structural component in Spanish fiscal policy" such as the execution of European funds.
"It has reinforced the role of the regional authorities in the management of structural investments"
According to analysts at Goldman Sachs, "as the ability to execute differs between regions,
the government is exposing itself to additional risk
in trying its biggest trump card to promote growth."
And he adds: "Given that the new political pact with regionals depends crucially on European funds, the political stability of Spain
it depends on a speedy approval of the EU budget.
Any delay in the approval and adoption of the community budget and related funds
would probably lead to an increase in political instability in Spain
He is also pessimistic that the pact reached "with ERC, PDeCAT and EH Bildu" may be extended "beyond next year."
Nor does it praise the approved Budgets, which are "
a set of different objectives with restrictions
Remember that "they combine tax increases (4,200 million euros, 0.4% of GDP), additional expenses (11,000 million euros, 0.9% of GDP) and the increase in pensions and salaries of public employees ".
And he insists on "the restriction" that involves "winning the support of regional parties by transferring a large part of the Recovery Fund (18,000 million euros, 1.5% of GDP) to the regional authorities."
According to the criteria of The Trust Project
PoliticsThe PP rejects the Budgets "of the lie" and of "the betrayal of Spain"
Congress Pablo Casado and Inés Arrimadas attack the pact with Bildu and Pedro Sánchez accuses them of following Trump's path
InterviewManuel Valls: "The left wants to return to the division of the two Spains"
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