Airef calls for a reform of the Spanish fiscal framework because it is "inconsistent" with the European one.

The Independent Authority for Fiscal Responsibility (AIREF) called this morning for a thorough reform of the national fiscal framework to eliminate its inconsistencies with the European framework. President Cristina Herrero called this morning for addressing national deficiencies, taking into account Spain's high debt level and decentralization.

During his speech at the 42nd economics seminar organized by the Association of Economic Information Journalists (APIE) at the Menéndez Pelayo University in Santander, he stated that "the inconsistencies between the European and national fiscal frameworks have become more evident in 2024, a year in which only the deficit rule has applied at the European level, while the national spending rule has also applied at the national level." In this regard, Herrero criticized the failure to comply with the national spending rule in 2024 by the State, 13 autonomous communities, and some municipal public administrations.

Herrero also referred to the impact on public finances of the €10 billion increase in military spending announced by the government to address global geopolitical challenges. This increase will imply an increase in public spending, rising from 3.7% to 4.1% of GDP, a percentage higher than the European Union's recommendation.

In this regard, the government stated that some items would be transferred to others and that the impact would be "zero." Regarding this, Herrero commented that "in budgetary terms, this zero impact may be possible, but not in terms of deficit and debt." "10 billion in defense spending is 10 billion in deficit and debt, no matter how much restructuring is done," he stated. Furthermore, Herrero asserted that, to address this expenditure, "either revenue must be increased or other expenditure must be reduced. There is no doubt about that."