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Spain's efforts to control regional spending

07/22/2010

Spain is a highly decentralized country with the central government in Madrid able to exercize little control on spending by the regions. The eurozone crisis and the higher than expected 8% deficit in Spain for 2011 is changing attitudes in the regions and in Madrid. The clause inserted in the constitution in 2011 with Germany's insistence for a balanced budget gives Madrid power to restrain spending. An agreement was reached with regional governments including Catalonia for new legislation on spending controls. Valencia was downgraded along with Spain in the recent downgrade of Spain's credit rating.

Grouped Articles

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Spain: Budget Woes Hit Regional Governments

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Spanish Regional Governments to Get Aid

New York Times 01.19.2012

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Spain Adjusts Deficit-Reduction Target at European Summit

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New York Times 11.25.2012

Spain Buries Itself In Unpaid Bills

Wall Street Journal 12.28.2012

Spain Pays a Price for Smaller Deficit

Wall Street Journal 02.28.2013


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