Europe and its Institutions need to be more credible, says Montoro
July 27, 2012 1 Comment
Spain’s Minister for the Treasury and Public Administration Services, Cristóbal Montoro, said that “we must improve the credibility of Europe and its institutions”, and defended the need to step up the reform of certain European bodies in order for them to act. The minister added that the economic crisis “has been caused by a lack of budgetary and financial discipline in several countries within the eurozone that were not warned of the risk behind such borrowing, and the failure to apply discipline”.
Cristóbal Montoro said he believes there is a need “to promote reforms in Spain and in the European institutions that do not favour opportunist operations”. The Spanish political project must fit into that “reformed and integrated” European scheme “that will lead to growth. We wish to commit ourselves to stability within that Europe”, said the minister.
In his speech in the Lower House of Parliament during the debate on the budgetary expenditure ceiling for 2013, the Minister for the Treasury said that “today, we are talking about creating a competitive Spain, with no internal imbalances, that does not depend on foreign financing and all within the framework of the European Union”. Regarding the great single currency project, he said “we are talking about strengthening the euro because Europe makes no sense without its currency”. “Europe will be created with the currency or it won’t be created at all”, added Montoro.
La Moncloa reported that, according to Montoro, next year will be the last year of recession. “There is no more time left for financing inefficient public administration services”, he said. 2013 will be “a tough year of adjustments, although the fall in activity will be more moderate” than in 2012.
A budget for recovering from recession
The minister stressed that the budget for next year is solely aimed at ending the economic recession in Spain and at setting an expenditure ceiling, “which involves each and every one of the regional governments for the first time ever”, and that forms part of the structural reforms needed by Spain. “It is not a question of losing anything but rather of gaining a present, capacity and a future”, he added.
Cristóbal Montoro also highlighted in his speech that the public deficit will be corrected in order to achieve growth and create jobs. He said there is a need to stop obtaining financing from other countries, which is what has caused the economy to falter. “We need to grow on the basis of our own financing, our own savings”. To that end, he recalled that the Government is committed to correcting the public deficit while bolstering economic activity and without incurring further job losses.
The Minister acknowledged that the risks hanging over the economy are grave, and said that “we are once again holding out a hand to the political groups. We believe in consensus, we recognise the gravity of the situation. We need to agree, commit to flexibility and to dialogue”.
The expenditure ceiling
The limit on non-financial spending by the State in 2013 was set at 126.79 billion euros, an increase of 9.2% due to the effort needed to service debt that will increase by 9.11 billion euros, and the additional 6.69 billion euros that will be needed by the Social Security system.
If these items were excluded, the expenditure ceiling would drop by 6.6% to 73.26 billion euros.
Forecast non-financial revenue for the State in 2013 amounts to 124.05 billion euros and the financing of regional governments through the expenditure budget amounts to 35.31 billion euros.
Expenditure made available to ministerial departments will be reduced by 12.2% to 31.06 billion euros.
Article source: Kyero.com