Economic Partnership Programme of Spain - Main contents

EN

Official Journal of the European Union

C 368/1

The Stability and Growth Pact (SGP) aims at securing budgetary discipline across the Union and sets out the framework for preventing and correcting excessive government deficits. It is based on the objective of sound government finances as a means of strengthening the conditions for price stability and for strong sustainable growth underpinned by financial stability, thereby supporting the achievement of the Union's objectives for sustainable growth and jobs.

Regulation (EU) No 473/2013 sets out provisions for enhanced monitoring of budgetary policies in the euro area and for ensuring that national budgets are consistent with the economic policy guidance issued in the context of the SGP and the European Semester. Since purely budgetary measures might be insufficient to ensure a lasting correction of the excessive deficit, additional policy measures and structural reforms may be required.

Article 9 of Regulation (EU) No 473/2013 sets out the detailed arrangements for economic partnership programmes, to be submitted by Member States whose currency is the euro under an excessive deficit procedure. Setting out a roadmap of measures to contribute to an effective and lasting correction of the excessive deficit, the economic partnership programme should specify in particular the main fiscal-structural reforms, especially those referring to taxation, pension and health systems and budgetary frameworks.

On 27 April 2009, the Council adopted Decision 2009/417/EC (2), whereby Spain was the subject of an excessive deficit procedure. On 21 June 2013, the Council adopted a revised recommendation under Article 126(7) of the Treaty on the Functioning of the European Union (TFEU) in the context of an excessive deficit which was opened before the entry into force of Regulation (EU) No 473/2013.

On 1 October 2013, and within the time frame established by Article 9(3), and 17(2) of Regulation (EU) No 473/2013, Spain presented to the Commission and to the Council its Economic Partnership Programme, setting out in particular fiscal-structural reforms that aim at ensuring an effective and lasting correction of the excessive deficit. The Economic Partnership Programme includes measures aimed at implementing the 2013 country-specific recommendations (CSRs) addressed to Spain by the Council Recommendation of 9 July (3)‘Council Recommendation of 9 July 2013’: (i) ensuring differentiated and growth-enhancing fiscal repair (CSR1 and 2); (ii) restoring lending to the economy (CSR 3); (iii) fighting against unemployment and the social consequences of the crisis (CSR 4, 5 and 6); (iv) fostering competitiveness and growth (CSR 7 and 8); and (v) modernising public administration (CSR 9).

The fiscal-structural measures that Spain plans to implement are the following: (i) strict monitoring of budgetary developments at regional and local levels; (ii) the creation of an independent fiscal institution; (iii) the reduction in healthcare and public administration spending; (iv) the elimination of commercial arrears in the public sector; (v) the reduction of price inertia in public expenditures and revenues; (vi) pension...