By John Smith • 19 February 2021 • 11:13
The Spanish Government faces a financial dilemma
Credit: La Moncloa flickr
WHILST Vice President of the Government and Minister for the Economy Nadia Calviño is doing the rounds talking about the future, the Bank of Spain has revealed that the Country’s debt is the highest in more than 100 years.
Understandably, like so many other countries around the world, Spain has had to cope with the huge losses of revenue caused by the Covid-19 pandemic and the need to support industry and workers for nearly one year.
This means that with almost no tourism and the hospitality industry in tatters, the government has run up its national debt to €1.31 trillion, that’s € 131,000,000,0000, an increase in the year of €112.438 billion.
Prior to the pandemic, the European Union was highly critical of the Spanish debt ratio which crept above 100 per cent of Gross Domestic Product (GDP) and by 2019, this had been reduced to 95.5 per cent but by December 2020 it had shot up to 117.1 per cent and could continue to rise.
There are great plans ahead for the economy but so much depends upon the European Union transferring money from the Emergency Relief Fund and despite promises no significant amounts have been received only suggestions that Spain needs to implement additional policy changes.
Whilst this is being considered, debts can only continue to mount and according to EURACTIV, with a population of 46.9 million, if each Spanish resident is responsible for the debt, then the individual owes €29,700, which is more than the average annual wage!
Thank you for taking the time to read this news article “‘They’ve never had it so bad’ as Spanish debt highest for 100 years!”.
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Married to Ophelia in Gibraltar in 1978, John has spent much of his life travelling on security print and minting business and visited every continent except Antarctica.
Having retired several years ago, the couple moved to their house in Estepona and John became a regular news writer for the EWN Media Group taking particular interest in Finance, Gibraltar and Costa del Sol Social Scene.
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