• Home
  • Equities
  • Fixed Income
  • Alternative Investments
  • Multi-Asset
  • Passive
  • Thematic
  • Events
  • Market Intelligence
  • Investment Week
  • ESG Spotlight
  • Thematics Spotlight
  • Newsletters
  • Sign in
    • You are currently accessing Investment Europe via your Enterprise account.

      If you already have an account please use the link below to sign in.

      If you have any problems with your access or would like to request an individual access account please contact our customer service team.

      Phone: +44 (0) 1858 438800

      Email: [email protected]

      • Sign in
     
      • Account details
      • Newsletters
      • Contact support
      • Sign out
     
  • Follow us
    • Twitter
    • LinkedIn
    • Newsletters
  • Register
  • Events
    • Upcoming events
      event logo
      Women in Investment Festival 2020

      Investment Week, Professional Adviser, Professional Pensions, Retirement Planner and Investment Europe have collaborated to launch the Women in Investment Festival 2020, in partnership with HSBC Global Asset Management.

      • Date: 03 Mar 2020
      • The Brewery 52 Chiswell Street London EC1Y 4SD, London
      event logo
      Milan Forum 2020

      InvestmentEurope's 10th annual Milan Forum will take place on 5th March at the Four Seasons Hotel, Milan.

      • Date: 05 Mar 2020
      • Four Seasons Hotel Milan Via Gesù, 6/8, 20121 Milano MI, Italy, Milan
      event logo
      Nordic Summit Stockholm 2020

      InvestmentEurope's Nordic Summit 2020 will take place on 10-11 March at the Grand Hôtel Stockholm.

      • Date: 10 Mar 2020
      • Grand Hôtel, Stockholm Södra Blasieholmshamnen 8 103 27 Stockholm Sweden, Stockholm
      event logo
      Frabelux Forum 2020

      The 3rd edition of the Frabelux Forum will be held on Thursday, 19th March at the Ritz Hotel in Paris

      • Date: 19 Mar 2020
      • The Ritz, Paris
      View all events
  • Investment Week
  • ESG Spotlight
  • Thematics Spotlight
Investment Europe
Investment Europe

Sponsored by

Sharing Alpha
  • Home
  • Equities
  • Fixed Income
  • Alternative Investments
  • Multi-Asset
  • Passive
  • Thematic
  • You are currently accessing Investment Europe via your Enterprise account.

    If you already have an account please use the link below to sign in.

    If you have any problems with your access or would like to request an individual access account please contact our customer service team.

    Phone: +44 (0) 1858 438800

    Email: [email protected]

    • Sign in
 
    • Account details
    • Newsletters
    • Contact support
    • Sign out
 

Spain's 2013 budget likely to include a 20% reduction in current expenditure, Barclays

  • Chiara Albanese
  • 27 September 2012
  • Tweet  
  • Facebook  
  • LinkedIn  
  • Send to  

Spain is set to announce today a series of economic reforms and a tighter budget for 2013, aimied at avoiding the need to request officially for an international bailout.

Spain is set to announce today a series of economic reforms and a tighter budget for 2013, aimied at avoiding the need to request officially for an international bailout.

"We expect the government to remain committed to the agreed 4.5% GDP budget deficit target. However, we see the risk that it could be amended if Spain revises up its 2011 budget deficit figures to 10% of GDP from 8.9% of GDP, to include fund injections used to support the banking sector, which are estimated at €11bn," said Fabio Fois, European economist at Barclays.

Related articles

  • Barclays on Spain: "pace of economic contraction is decelerating"
  • Time to buy peripheral euro zone bonds, says AXA IM
  • Spain unlikely to reach 2013 fiscal targets, says Barclays
  • S&P cuts Spain's rating to BBB- with negative outlook

According to the bank, there is little political room for the Spanish government to implement additional primary balance adjustments on top of the one presented at the beginning of August of €50bn over the next 2.5 years.  

"The details of the budget will be presented over the weekend. However, we think that it is likely to include a 20% reduction in current expenditure in all ministerial departments, but is unlikely to take any decisive action on curbing pension spending," Fois said.

The government is also supposed to present a set of structural reforms aimed at enhancing competition in the goods and services sectors to increase the overall domestic and external competitiveness of the economy.

In line with the ratification of the fiscal compact, Spain is likely to establish an independent budgetary authority. The mission of this court will be to review budgets and budget assumptions before the actual discussion in parliament.

"Overall, we continue to think that Spain will miss its budget deficit target for this year and next year as we see scope for fiscal slippages at the Regional Government level. Political tension between central government and the regions could also increase the likelihood of additional fiscal slippage because the chances that the government will use its powers to impose fiscal discipline are slimmer," Barclays warned.

Meanwhile, consulting firm Oliver Wyman is due to reveal on Friday the recapitalisation requirements of 14 Spanish financial entities. According to the local press, the firm has broadened the capital shortfall of the Spanish banking sector. 

  • Tweet  
  • Facebook  
  • LinkedIn  
  • Send to  
  • Topics
  • Iberia
  • Barclays
  • Europe
  • Eurozone
  • Regions
  • Spain
Back to Top

Most read

Swiss regulator proposes sanctions against GAM for not disclosing liabilities
Swiss regulator proposes sanctions against GAM for not disclosing liabilities
Deutsche Bank unveils ESG multi-asset fund exclusively in Spain
Deutsche Bank unveils ESG multi-asset fund exclusively in Spain
PGIM Investments makes Benelux, Switzerland and UK push
PGIM Investments makes Benelux, Switzerland and UK push
Thematics AM CIO, CEO outline investment objectives
Thematics AM CIO, CEO outline investment objectives
AB strengthens Swiss distribution team
AB strengthens Swiss distribution team
  • Contact Us
  • Marketing solutions
  • About Incisive Media
  • Terms and conditions
  • Policies
  • Careers
  • Twitter
  • LinkedIn
  • Newsletters

© Incisive Business Media (IP) Limited, Published by Incisive Business Media Limited, New London House, 172 Drury Lane, London WC2B 5QR, registered in England and Wales with company registration numbers 09177174 & 09178013

Digital publisher of the year
Digital publisher of the year 2010, 2013, 2016 & 2017
Loading