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AIReF recommneds the implementation of corrective measures in 7 Autonomous Communities due to risks of noncompliance with 2014 deficit target

5 December 2014
5:35 am

Deviation from the budget balance target (set to -1% of GDP) in Extremadura, Cataluña, Valencia y Murcia could exceed 1% of GDP whereas in Castilla-La Mancha, Andalucia and the Balearic Islands deviations could go up to 0.3% of GDP.

There is practical certainty of deviation in the Autonomous Regions of Extremadura, Catalonia, Valencia and Murcia and high risk of deviation in Castilla-La Mancha, Andalusia and the Balearic Islands. AIReF believes that preventive measures should be applied now to these Autonomous Regions to foster compliance with the 0.7% deficit target for 2015. Chapter IV of the Law on Budgetary Stability & Financial Sustainability establishes the application of measures when there is risk of noncompliance with the budgetary stability target. AIRef is requesting the Ministry of Finance & Public Administration to adopt suitable measures. The Ministry must then apply the measures or publicly explain why not.Related documents: