BRUSSELS WARNS THAT DEBT AND UNEMPLOYMENT ARE CHALLENGES FOR SPAIN DESPITE THE RECOVERY

The vice-president of the community executive Valdis Dombrovskis explained during the presentation of his annual report on the Spanish economy that his growth “is exceeding expectations”, but that the country still registers macroeconomic imbalances and “there are challenges that persist”.

“We emphasize the high public debt, which is slowly falling, and also the private debt remains high even though it is falling steadily,” said the commissioner, who also highlighted the “still high unemployment” and the “relatively high rate of temporary jobs. ”

The Commission’s report indicates that Spain does not face “immediate risks” from a fiscal point of view, but warns that there are challenges for sustainability in the medium term.

Legacy

It highlights that the ratio of public debt to GDP (98% in 2017) remains high and that its level “has only begun to fall, while in the private sector it points out that the reduction that has already begun driven by growth must continue

Brussels also affirms that the external debt is still too high despite the fact that the current account surplus registered by the country since 2013 has helped to lower it, and warns that Spain should maintain these surpluses in a “continuous” way and for a ” ample period of time “before they reach” prudent levels “.

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EC WARNS 7 COUNTRIES FOR POLICIES THAT MAY LEAD TO TAX AVOIDANCE

The European Commissioner for Economic and Financial Affairs, Pierre Moscovici, acknowledged during a press conference that these practices “have the potential to undermine justice and equal conditions in the internal market and increase the burden on EU taxpayers”.

The French politician made the remarks during the presentation to the media of the winter package of the European Semester, which contains analysis of the economic and social situation in each country of the community club, with the exception of Greece, still immersed in the third program rescue.

As stressed by the former French minister, this is the first time that in these documents reference is made to aggressive tax planning and is part of the “imbalances” that must be reduced and the reforms that must be carried out.

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The European Commission 

He admitted that the situation has improved in recent years and, in this regard, stressed that measures have been adopted such as the automatic exchange of information.

“There is progress, but if we raise that issue it is because we believe that clearly more needs to be done, we must ensure that fair taxes become the norm, a norm without exceptions outside the EU and also within the EU,” he said.

The European Commission stressed that the adoption of EU legislation will contribute to reducing the losses of European taxpayers and, in particular, specified that by the end of this year the Member States must transpose the directive against tax avoidance (ATAD, for its acronym in Spanish). English) to national law.

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