European Commission Approves Budget Extension for Spain Until 2024

The European Commission has granted Spain an extension on its budget until 2024.

However, the Commission warned that Spain’s fiscal situation is ‘very difficult’ due to a high deficit.

The new government, led by Pedro Sánchez, is urged to present updated budgets as soon as possible.

It is projected that Spain’s deficit will exceed the 3% threshold of the GDP in 2024 and 2025.

Additionally, Spain’s public debt is expected to remain above 100% of the GDP in 2024.

The Commission emphasizes the need for a credible fiscal strategy in the medium term.

Despite having the highest unemployment rate in the EU, Spain has seen a decrease in unemployment. The Commission is less concerned about Spain’s external sector and competitiveness.

A review will be conducted in 2024 to assess whether imbalances in Spain and other member states have been corrected.

The European Commission will present its recommendation on the eurozone in December, to be discussed and approved in early 2024.

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