The fiscal relief for the regional accounts of the debt removal of 83,252 million euros announced by the Government and endorsed with the votes of only three autonomous communities by the Fiscal and Financial Policy Council will last for barely … one or two yearsas the Moody’s qualification agency has warned on Thursday in a note issued with the significant title of ‘Debt relief gives a respite to Spanish autonomous communities but increases the moral risk for the State’.
«We hope that the reduction of regions’s debt within the framework of the common regime Help achieve fiscal consolidation in the next one or two “agency analysts say in the released note Thursday. «However, we also think that this effect will not be lasting Unless accompanied by conditions to improve fiscal strength or a global reform of the regional financing system to align resources with regional responsibilities «.
Conditionality has already become a mantra that the government does not stop listening to the process. At the beginning they were only experts but this Thursday the Independent Fiscal Responsibility Authority (Airef) has issued a report in which it warns of this matter, as already done at the meeting of the Fiscal Policy Council on Wednesday, according to the Minister of Finance itself, María Jesús Montero.
«If debt forgiveness Discounts prudent fiscal policies At the regional level, this would weigh on the finances of public administrations and would have an adverse impact on the government’s fiscal strength, ”warns the agency, which advances that for this reason its evaluation of the measure will be negative for the purpose of qualifying the Spanish debt.
Bad news, since in the treasure it was trusted that the good data on the Spanish economy will facilitate an improvement of the qualification from the Spanish debt that has been waiting for several years and that it seems that it now moves away to judge by the reports issued by the agencies.
As S&P already did, Moody’s analysis warns that the announcement of the measure will not lead to any rethinking of the credit consideration of the affected autonomies titles, at least as long as the process on whose develops the same reserves formulated by other agencies is not initiated.
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