Spain: Autonmous communities greatest liability, study says
Just 3 will make deficit 2012 reduction targets, economists say
If the autonomous provinces adhere strictly to the central government's austerity measures and withhold year-end public employee bonuses, they will at best reduce their deficit to 1.92% of GDP, four tenths above the central government's 1.5% target, according to the study.
Only Galicia, Navarre and La Rioja will make the government-mandated 2012 target, while Castille-La Mancha and Catalonia will probably overshoot it by the most points, according to FADEA.
''Serious doubts exist as to the autonomous communities' ability to implement their own budgets, and that these will contribute to a consolidation,'' the report said.
The autonomous communities have cut just 136 million euros on public employee spending in the first quarter of 2012, a far cry from the 3.636 billion euros in cuts needed for the year. The autonomous communities were responsible for 70% of the nation's excess deficit in 2011, according to the report.
Wednesday, 22 August 2012
(ANSAMed) - MADRID, AUGUST 21 - Spain's autonomous communities are ''the major risk factor'' undermining the country's efforts to reduce the deficit to 6.3% of GDP this year, according to a Foundation for Applied Economics Studies (FADEA) study of regional 2012-2014 budgets released on Tuesday.
Posts
