- AIReF issued 8 recommendations—5 new and 3 reiterated—to promote compliance with the expenditure rule, strengthen the medium-term focus of the fiscal framework and improve transparency
- AIReF warns that the current Medium-Term Plan does not constitute a genuine medium-term fiscal strategy, as it fails, among other things, to specify the measures needed to meet expenditure commitments or allocate responsibilities across General Government
- The differences between national and European fiscal rules also make it harder to coordinate compliance with the common benchmark
- The Ministry of Finance considers that the recommendations on coordination and the expenditure rule addressed to Central Government have been met, and that the Plan already constitutes a medium-term fiscal strategy
- Most Autonomous Regions committed to taking measures to comply with the national expenditure rule in 2026, while the Balearic Islands, Asturias, Aragon, Andalusia and Castile-La Mancha departed from the recommendation or did not specify any measures
- AIReF reiterates the need to publish monthly information on the European expenditure rule and resume publication of information on the national rule, while the Ministry of Finance considers that the available information allows both rules to be monitored adequately
- AIReF continues to advocate formal agreements with the Ministries of Finance and Economy to regulate the regular provision of information, while both ministries consider that the existing cooperation mechanisms already fulfil the recommendation
- AIReF has updated its interactive tool, which enables users to track recommendations, with Q2 information
The Independent Authority for Fiscal Responsibility (AIReF) today published on its website a follow-up on the recommendations it issued to General Government bodies in Q2 2026. During that quarter, it issued 8 recommendations—5 new and 3 reiterated—to promote compliance with the expenditure rule, strengthen the medium-term focus of the fiscal framework and improve transparency.
These recommendations follow the comply-or-explain principle: General Government bodies must either comply with AIReF’s recommendations or explain why they depart from them. All the General Government bodies that received recommendations responded to AIReF’s request to state whether they intended to comply or explain their departure.
As a single recommendation may be addressed to more than one government body, the total number of recommendations by recipient was 37: 8 to the Ministry of Finance (2 in its capacity as a supervisory authority), 2 to the Ministry of Economy, Trade and Enterprise, 21 to Autonomous Regions (4 in their capacity as supervisory authorities) and 6 to Local Governments.
Expenditure rule
AIReF recommended establishing the coordination mechanisms needed to ensure compliance with the European expenditure rule across General Government. The Ministry of Finance considered that this recommendation had been met, citing, among other things, stronger coordination mechanisms and a common expenditure path in the Medium-Term Fiscal-Structural Plan (MTP). AIReF considers, however, that the differences between national and European fiscal rules make it harder to coordinate compliance with the common benchmark.
To prevent non-compliance with the national expenditure rule in 2026, AIReF recommended that Central Government, all Autonomous Regions and six Local Governments take measures. The Ministry of Finance considered that Central Government already fulfils this recommendation by monitoring budget execution and the expenditure path agreed in the MTP. However, AIReF notes that there are significant differences between the national and European rules. These have recently widened, as certain defence and energy expenditure is excluded only under the European rule. It therefore considers that compliance with the European rule does not establish compliance with the national expenditure rule.
Most Autonomous Regions committed to taking measures. The Balearic Islands, the Principality of Asturias, Aragon, Andalusia and Castile-La Mancha departed from the recommendation or did not specify any measures. In these cases, AIReF maintains that measures are needed given the assessed risk of non-compliance. At local level, Zaragoza, Cordoba, Barcelona and Palma City Councils committed to taking measures. Mallorca Island Council and Valencia Provincial Council departed from the recommendation. AIReF notes that both entities remain at risk of non-compliance in 2026.
AIReF also reiterated its recommendation that the Ministry of Finance publish monthly net primary expenditure figures for the European expenditure rule and resume monthly publication of eligible expenditure under the national expenditure rule. The Ministry considers that the information currently published and that supplied to AIReF and the European institutions allows expenditure to be monitored adequately. AIReF, however, considers that publishing monthly expenditure trends under the European rule would help identify potential deviations in advance. It also notes that discontinuing publication of information on the national expenditure rule is a step backwards for transparency.
Medium-term focus
AIReF recommended developing a realistic and credible medium-term fiscal strategy to ensure coordinated compliance with the national and European fiscal frameworks across General Government. In its response, the Ministry of Finance considers that the 2025–2028 MTP and the annual monitoring provided by the Progress Report already constitute such a strategy. AIReF, however, notes that the MTP sets commitments for the path of net primary expenditure but does not specify the measures needed to meet them. It also notes that fiscal planning must address national and European rules in a coordinated manner, and that regional and local governments must participate in setting and allocating fiscal targets.
AIReF also reiterated its recommendation that the Ministry of Finance expand the information in the Annual Progress Report by updating fiscal forecasts and the net primary expenditure path for every year of the MTP, with a breakdown by sub-sector. It also reiterated its recommendation that AIReF endorse the macroeconomic outlook in the Annual Progress Report or, at least, that technical discussions take place before publication.
During the quarter, AIReF also endorsed, for the first time, the government’s macroeconomic forecasts in the Economic Situation Report, following a request received at the start of preparations for the 2027 General State Budget. AIReF considers that this practice helps ensure that the budgetary stability objectives are underpinned, from the very start of the budgetary process, by realistic macroeconomic forecasts.
Transparency
Finally, to strengthen transparency, AIReF recommended that the Ministries of Finance and Economy, Trade and Enterprise formalise an agreement governing the regular provision of information, with an agreed level of detail and exchange protocols. Both ministries considered that the recommendation had been met, citing established cooperation mechanisms, regular meetings and ongoing responses to requests for information. AIReF notes, however, that the information received remains insufficient and continues to advocate a formal agreement in line with international best practice.