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Positive development on tax collection and a lower impact of the pandemic introduce biases in the deficit forecasts, which are revised to 7.7% of GDP in 2021 and 5.5% in 2022. The approval of the Recovery Plan and the suspension of fiscal rules anticipate that fiscal policy will remain expansionary.
The 2020 health crisis resulted in a large deficit of 10.1% of GDP and pushed public debt up to 120%. Going forward, fiscal policy will be conditioned by the suspension of fiscal rules and the arrival of Recovery funds, which suggests that it will remain expansionary.
In this publication you will find, on a weekly basis, our selection of the most relevant news regarding financial regulation.
In this publication you will find, on a weekly basis, our selection of the most relevant news regarding financial regulation.
