The Independent Authority for Fiscal Responsibility (AIReF) estimates that the growth of the spending rule could reach 7% in 2024 at the regional level. It argues that this conditionality is fundamental since the Autonomous Liquidity Fund will continue to operate, financing the current and past deficits of various autonomous communities. AIReF highlights the importance of considering the initial situation of each community and its relative position in a financing system pending reform.
Regarding the debt relief to the Autonomous Communities (CCAA), it is proposed that Euskadi and Navarra will have to contribute to the payment of interest, which were previously in the hands of the autonomous communities but will now fall to the State. AIReF criticizes the methodology for calculating the debt relief, mentioning that this could impact the calculation of the State's spending rule.
AIReF emphasizes the obligation to meet the fiscal targets set at the national and European levels, which were not met in 2024, exceeding the spending rule by 2.6%. The need for measures such as debt forgiveness is recognized as a step towards returning to the financial markets, although it is considered insufficient to resolve the temporary nature of the exceptional financing mechanisms that have become permanent.
The forgiveness of CCAA debt would imply a capital transfer from the State to the autonomous administrations. AIReF advocates for considering both expenditure and revenue in the calculation of computable expenditure. The importance of the financial discipline imposed by markets is highlighted, and it is suggested to address the reform of the autonomous financing system.
In a meeting with regional councilors, the president of AIReF, Cristina Herrero, raised the need for any debt forgiveness to be accompanied by conditionality to ensure compliance with fiscal rules. AIReF also mentioned that computable expenditure would be the best variable to reflect the effort made by the autonomous communities, incorporating both the expenditure and revenue sides into the evaluation.
