The tense situation in the Social Security accounts, which has been aggravated by the pandemic, has raised its debt up to November to an unprecedented figure of 106,176 million euros (increases of more than 13% in year-on-year terms). This strong increase is largely responsible for the fact that the liabilities of the Public Administrations as a whole escalated in November to 1,506 trillion euros, the equivalent of 116% of GDP, which in practice means that in the absence of only data from December, Spain would exceed the debt ceiling that the Government had set for the whole year, of 115.2%, as contemplated in the Stability Plan sent to Brussels at the end of April.
The debt of the administrations had a slight increase of 0.6% compared to the previous month in relative terms, according to the data published this Tuesday by the Bank of Spain. In relation to the same month of 2021, public liabilities rose by 5.6% to 79,227 million, due to all the higher expenses derived from the crisis caused by the war in Ukraine, the sharp increase in inflation (which last year rose from average 5.7%) and the rise in energy prices.
[11:48] Nerea de Bilbao YarnozDebt Chart Public Debt – Infogram[11:49] Cristina Casillas Carrerahttps://www.lainformacion.com/mercados-y-bolsas/el-tesoro-coloca-letras-a-corto-plazo-marcando-el-interes-nuevos-maximos/2879848/El Tesoro places short-term letters term marking the new maximum interest The organization meets the objectives of attracting this new auction and the interest continues to rise. In the case of 9-month paper, profitability is close to 3% and in 3-month bills it is the highest…
The Government has had to deploy a whole package of emergency measures, including reductions in energy taxes, VAT or free public transport, which have been added to those already approved to deal with the consequences of Covid . Despite this, the debt to GDP ratio, which according to the 2022-2025 Stability Program should be gradually reduced until closing the period at 109.7%, has maintained a downward path.
The State debt increases 1.33 trillion
This, in a context in which Brussels keeps fiscal rules suspended – the obligation for countries to stick to deficit and debt targets – until 2024. The European Commission made this decision as a result of the health crisis caused by Covid to give governments leeway. With respect to the rest of the administrations, the State’s liabilities increased in November to 1.33 trillion euros, which represents an increase of 7.3% year-on-year and 0.7% in monthly terms.
With respect to the territories, the debt of the autonomous communities increased by barely 382 million in relation to October to 316,509 million euros, although it rose 1.3% compared to the same period last year. In the case of local corporations, which continue to present the most comfortable situation in aggregate terms, their debt was reduced in November by 242 million compared to the previous month, up to 22,204. In interannual terms it decreased by 0.5%.
Looking ahead to the year just released, the Treasury plans to issue 70,000 million in full rate hike by the European Central Bank (ECB) to counteract inflation. He will have to carry out these operations in the middle of the process of withdrawing sovereign debt purchases by the issuer and when the issuer plans to start reducing its balance as of next March. In the organization they trust that this process will not translate into a sharp increase in financing costs for our country.
