The Independent Authority for Fiscal Responsibility (AIReF) published the Opinion on Fiscal Risks on its website today. This is a pioneering analysis in Spain of the most relevant fiscal risks to public finances, given the economy’s vulnerability to unexpected shocks such as the financial crisis, the sovereign debt crisis, the COVID-19 pandemic, the energy crisis, and armed conflicts. AIReF asserts that the analysis of these risks is fragmented and incomplete in Spain, highlighting the need to make adequate provisions to ensure sustainability and making proposals to improve this analysis.
Specifically, AIReF focuses on the risks considered most important: macroeconomic risks, which tend to be the most frequent and have the most significant impact on public accounts; environmental risks, the frequency of which has increased recently; and risks of legal action against the State. It also analyses the Contingency Fund as the main instrument for mitigating fiscal risks.
