This Wednesday, the Congress of Deputies approved the stabilization path for the period 2024-2026. budget deficit and debt targets The stability targets proposed by the Government for the State, autonomies, municipal councils and Social Security, the previous step in the preparation of the 2024 Budget, will now go to the Senate, where they are expected to be rejected by a simple majority. Since then they have already voted against it in this Wednesday’s vote of the PP.
The government’s agreement on the stabilization path was approved by 179 votes in favor and 171 against (PP, Vox and UPN) in a second vote by appeal, after a tie of 171 votes was recorded in the first vote because none of the Junts voted (which is not currently valid) so in favour. ) or an accidental surrogate from Sumer.
Alongside the path of stability, First Vice President and Minister of Finance María Jesús Montero advocated the path of stability. 2024 spending ceiling – 199,120 million more than the historical maximum, 0.5% more – and was not put to a vote alongside the rebalancing plan to redirect finances towards the 3% of GDP deficit target, which was also approved by 179 votes in favor and 171 against.
The stability offered by the government foresees the path Reducing the public deficit to 3% of GDP in 2024The European Union thus meets the Stability and Growth Pact reference and is making progress on this correction in 2025 (2.7% of GDP) and 2026 (2.5% of GDP). According to the path drawn by the government, the debts of all administrations will decrease to 106.3 percent of GDP in 2024, 105.4 percent of GDP in 2025 and 104.4 percent of GDP in 2026.
blockade in the Senate
Predictably, the path to stability that managed to advance in the Congress of Deputies will run aground as it passes through the Senate, where the bill is rejected.PP’s absolute majority This will mean it goes back to the Government, which will have to submit a new proposal within 30 days.
The government’s presentation a second way It allows him to present his 2024 budget project even before the targets are approved by the Senate.
In this case, the Government will base the preparation of the 2024 Budget on the path it sent to the European Commission in April within the scope of the Stability Program Update. This path does not change the target of a budget deficit of 3% of GDP by 2024. However, the distribution varies according to administrations; This means tougher targets for autonomous communities (balance instead of a tenth of the deficit) and cities. councils (two-tenths surplus instead of balance).
During the parliamentary debate this Wednesday, Montero criticized the PP for the final rejection in the Senate of the deficit and debt path proposed by the Government. “a greater economic strangulation” There will be more recommendations for communities and city councils than those proposed by the Government, because they will have to adapt to targets that are more challenging than their own. regional and local governments They took it as a reference in their 2024 budget projects.
Both of them path of determination Aspect spending ceiling These are the previous steps in preparing the 2024 Budget, for which the Government is “working very hard” to reach Congress “as soon as possible” and “put it on the path of progress, support the productive fabric and support production”. Commitment to smart reindustrialization,” Montero argued in the Senate gallery (where the debate took place while the Capitol building was under construction). The government’s goal is to approve a Budget project in the first quarter of the year.
The Minister and fourth vice-president added that the Government intends to align economic policy objectives with the sustainability of public accounts once European fiscal rules are re-established. Montero underlined the Treasury chief’s determination to maintain balance since the suspension of these rules, which the executive branch maintains even when these rules are suspended. We expect to close 2023 with a deficit of 3.9% of GDP As promised in Brussels.