The European Commission (EC) warned today that the high levels of public and private debt, as well as the high levels of unemployment, especially among young people, pose challenges for the Spanish economy despite its “robust” growth.
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.
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 “.
With regard to unemployment, the Commission recognizes that Spain has been able to “quickly” reduce rates – from over 27% in 2013 to 18% this January – but remember that it remains among the highest in the European Union, above all, among young people