Spain's autonomous regions remain on the centre stage of the country's fiscal crisis. On 28 August, Catalonia - Spain's largest regional economy and its most indebted region - announced that it will ask the central government for a EUR 5 billion bailout in order to meet refinancing obligations. Catalonia thus becomes the third autonomous region, following Valencia and Murcia, to tap the bailout fund created by the central government in July. The total sum requested by the three regions amounts to EUR 9.8 billion, more than half of the fund's EUR 18 billion total capacity. Furthermore, four other regions have already hinted at the possibility of requesting financial assistance as well. Spain's regions account for over a third of overall public spending, including key areas such as education and healthcare, and have been unable to access capital markets since 2010. Spain's fiscal problems continue to put the country at the forefront of the Euro Area debt crisis, as investors remain sceptical that the government will be able to meet its fiscal goals in the midst of a deepening recession that has caused tax receipts to plummet. Against this backdrop, the yield on Spanish debt continues to hover close to the critical 7% threshold, and only conjecture regarding potential debt purchases by the ECB has brought down yields from the historic highs reached at the end of July.
Fiscal woes continue as several regions request bailout
September 3, 2012
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Spain Fiscal Chart
Note: Annual public debt and fiscal balance as percentage of GDP.
Source: National Statistical Institute (INE) and FocusEconomics Consensus Forecast.
Spain Economic News
October 7, 2016
In August, industrial production expanded 4.0% from the same month last year in working-day adjusted terms.
October 5, 2016
The Markit Purchasing Managers’ Index (PMI) Composite Output Index came in at 54.1 in September, which was slightly below August’s 54.8 reading.
September 30, 2016
Spain’s current account balance incurred a surplus of EUR 3.0 billion in July, which was above the EUR 2.7 billion surplus recorded in the same month of last year and marked the highest reading since December 2014.
September 29, 2016
In August, retail sales rose 4.9% over the same month last year as the discount season drew to an end.
September 29, 2016
In July, the Spanish Board of Architects (Colegio de Arquitectos Técnicos) granted 6,267 new construction permits, according to data published by the Ministry of Public Works (Ministerio de Fomento).