This week, the same day that the Minister of Finance registered his Budgets in Congress, the Bank of Spain hosted a conference under the title Spain: From recovery to resilience . In that event, the number two of the IMF, David Lipton, warned of the need of our country to prepare to face future crises with greater strength than just passed. And the Governor of the Bank of Spain, Luis María Linde, pointed out our great weakness:
an exorbitant public debt that will cost "several decades" to reduce to 60% of the GDP, as the Stability and Growth Pact of the European Union.
According to the pendrive of the public accounts that Cristóbal Montoro delivered to the president of the Congress, the State will allocate in 2018 to the payment of interests of the debt 31,547 million euros. A figure that represents 8.9% of the total expenditure of the Budget and is greater than other items such as unemployment (5%) or social services (5.6%). The public debt will exceed this year the trillion euros. Fortunately, in the last three years GDP has grown and this will be 97% of our national wealth, far from the 35.6% of 2007, but without going beyond the psychological barrier of the value of the Domestic Product. Before the crisis, the public debt per capita of the Spaniards was 8,400 euros. Now, each Spaniard owes 24,583 euros for state expenses.
The record in collection that the PGE foresees this year could be destined to reduce debt or to invest in R + D + i. Departing this last one, by the way, barely represents 2% of the Budget, a pyrrhic percentage that could even not be executed,as it happened in 2017. However, that would be to work for the long term. And in politics, short-termism is more profitable Especially when you are in a minority government knocked out by the partner holding the legislature.
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