“The ‘men in black’ will no longer come from 2025,” said Carlos Body, the Minister of Economy, Commerce and Business, in statements to the Cope network. According to this announcement, Spain is getting rid of Brussels’ special surveillance after injecting nearly 90 billion into the financial sector since 2008.
This expenditure represents a cumulative impact on the public deficit (the imbalance between State income and expenditure) of five points of GDP (Gross Domestic Product). Close to 75 billion, at the end of 2023, according to the latest data published by the European Commission itself.
Body, which presented this Tuesday in the Council of Ministers the financing strategy of the Public Treasury for this year, has explained that during 2025 our country will pay the additional payment that the State owes to the European Stability Mechanism (ESM) for the loan he gave us to rescue financial institutions in 2012, after the burst of the real estate bubble.
“After the payment made this year to the ESM, the Kingdom of Spain will no longer have missions from European and international institutions in relation to this loan, with this rescue of financial institutions,” the Minister of Economy stressed.
“We had post-program missions since the rescue of the financial institutions, with a periodic frequency. This year we will have already reached the repayment of 75% of that credit that the ESM gave us, and this means that these missions and these reports will stop being issued,” Corporal detailed.
Eurostat, the statistical agency of the European Commission, issued the report in October that analyzes the evolution of support programs for the financial sector. The report estimates the expenditure that Spain has had to assume between 2008 and 2023 for the injection programs to the financial sector at around 90,000 million euros, the bulk being that of 2012.
That was the year, among others, of the rescue of Bankia, CatalunyaCaixa and Banco de Valencia. This absolute figure also includes what was allocated to Sareb, which was registered in 2021 as public debt. In this process, the State has only received close to 16,000 million. Hence the result of the gap of 75,000 million. In GDP points, only Cyprus, Greece, Ireland, Portugal and Slovenia have accumulated a greater impact.
Currently, the Government’s objective is to close 2024 with a deficit of 3%, as committed to the new fiscal rules of the European Union (EU) to reduce budget imbalances and public debt.
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