Spain does not specify measures to correct the shortfall according to the ECB
| Date: March 11, 2010 | Source: Europa Press |
| Category: Economy | |
Go ahead and rate this post 
Loading ... The European Central Bank (ECB) believes that the goal of cleaning up the deficit covered by the austerity of the Spanish Government to comply with the Stability Pact in 2013 conforms to the recommendation under the excessive deficit procedure, although critical that this objective has not been backed up by concrete action.
"The goal of the annual average established structural improvement of 1.8 percentage points of GDP, in line with the recommendation under the excessive deficit procedure to achieve a superior fit to 1.5 percentage points. However, this target has been fully backed by concrete actions, especially for 2011-2013, "the institution headed by Jean Claude Trichet in the latest edition of its monthly newsletter.
The updated Stability Programme of Spain provides the correction of the excessive deficit in the country for 2013, in line with the recommendations in the context of the excessive deficit procedure.
However, the ECB will extend their criticism to other euro countries such as Ireland, which has until 2014 to reduce the country's deficit to below 3% of GDP, as the Irish Government, which is committed to achieve "ambitious structural consolidation" has not yet specified the measures to achieve those objectives.
In addition, the agency notes that in the case of Germany, the planned fiscal adjustment has not been backed up by concrete measures, but states that the German government expects to release a detailed consolidation strategy before the summer.
WEATHER DATA ballasting the first quarter GDP.
On the other hand, the ECB notes that quarterly volatility caused by the impact of "special factors" during the first three months of the year, including meteorological in nature, suggests resorting to semi-annual comparison when assessing the growth performance of the eurozone economy, whose recovery is "in progress", but is likely to occur in an "irregular".
Thus, the latest edition of the monthly bulletin of the ECB notes that "a number of special factors, among which are included unfavorable weather conditions observed in some euro area during the first quarter of 2010," influence economic activity block, which believes that "given this irregular course, is more appropriate to avoid the quarterly volatility and compare the observed evolution of the semi-annual growth in terms."
In this respect, the Governing Council of the institution headed by Jean Claude Trichet expects the economies of the euro area to grow at a "moderate" in 2010, in an environment where there is uncertainty, because the process balance sheet adjustment taking place in various sectors and the expectations of reduced utilization of productive capacity is likely to deter investment, as the deteriorating outlook for the labor market is weakening consumption.
Regarding inflation, the Governing Council expects price stability is maintained over the medium term, thereby supporting the purchasing power of households in the euro area.
It also says that inflation expectations remain firmly anchored at levels consistent with the objective of keeping inflation rates below, but close to 2% over the medium term.
