The spanish legal framework for curbing the public debt and the deficit

European Constitutional Law Review

Volumn 9, Issue 2, 2013, Pages 189-204

  Almendral, Violeta Ruiz ^a  

^a UNIVERSIDAD CARLOS III DE MADRID   (Spain)

Author keywords

[No Author keywords available]

Indexed keywords

EID: 84883406523     PISSN: 15740196     EISSN: 17445515     Source Type: Journal    
DOI: 10.1017/S1574019612001113     Document Type: Review

References (51)

1. See for example 'Spain's Economy. Split Personality', The Economist (7 July 2011), www. economist.com/node/18929032?zid=295&ah= 0bca374e65f2354d553956ea65f756e0, visited 7 July 2011.
2. The first Budgetary Stability Law was the 'Ley 18/2001, de 12 de diciembre, General de Estabilidad Presupuestaria', modified in 2006 by the 'Ley 15/2006, de 26 de mayo'.
3. The Financial Times editorial of August 28, 2012 (titled 'For the Good of Spain, Not the Party'), urged the Spanish government to request the bail out immediately. The Economist of Sept. 14, 2012, points in the same direction ('More Pain in Spain').
4. In the press articles abound making this point; just to name two examples, see for instance: J. Surowiecki, 'Smash the Ceiling', The New Yorker, August 1, 2011, p. 23
5. Specifically for Spain, see W. Münchau, 'Spain Has Accepted Mission Impossible', Financial Times, 15 April 2012.
6. See a summary of these measures at: www. Thespanisheconomy.com/ SiteCollectionDocuments/en-gb/Public%20Finances%20and%20Public% 20Debt/Public%20Finances/120713%20Additional%20Fiscal%20Measures.pdf, visited 13 May 2013).
7. Official economic indicators are now regularly updated and made available in English at www.thespanisheconomy.com.
8. The first Commission report was published on 18 Feb. 2009. See the full procedure at http:// ec.europa.eu/economy-finance/economic-governance/sgp/ deficit/countries/spain-en.htm.
9. the IMF Country Report No. 11/216, 'Spain: Selected Issues', www.imf.org/external/pubs/ft/scr/2011/cr11216.pdf, visited 13 May 2013, p. 6-10.
10. J. Juan et al., Nada es Gratis [Nothing is free], Fundación de Estudios de Economía Aplicada (FEDEA) (Ediciones Destino, 2011).
11. See the short guide published by the Commission, which partly helps to navigate through what has become a labyrinth of legal rules: 'Six-Pack? Two-Pack? Fiscal Compact? A Short Guide to the New EU Fiscal Governance',http://ec.europa.eu/economy-fi nance/articles/governance/2012-03-14- six-pack-en.htm, visited 25 May 2013.
12. On the Six Pack, the Two Pack and the Fiscal Compact, see K. Tuori, 'The European Financial Crisis - Constitutional Aspects and Implications', EUI Working Papers, Law 2012/28, p. 1, at p. 17. On the financial assistance mechanisms: A. de Gregorio Merino, 'Legal Developments in the Economic and Monetary Union during the Debt Crisis: The Mechanisms of Financial Assistance', Common Market Law Review (2012), p. 1613, at p. 1615.
13. V. Ruiz Almendral, 'Sharing Taxes and Sharing the Deficit in Spanish Fiscal Federalism', 10(1) eJournal of Tax Research (Australia) (at ssrn.com), p. 88, at p. 95-97.
14. J.M. González-Páramo: 'El Estado y las Haciendas territoriales frente a los retos de la estabilidad presupuestaria' [The State and the Autonomous Communities Face the Challenge of Budgetary Stability], 66 Revista de Estudios Regionales (2003), p. 19, at p. 27
15. R. Fernández Llera and C. Monasterio Escudero: '¿Entre dos o entre todos? Examen y propuestas para la coordinación presupuestaria en España' [Proposals for Budgetary Coordination in Spain], 195(4) Hacienda Pública Española (2010) p. 139 at p. 142.
16. After the enactment of new Art. 135, the Constitutional Court has issued ten opinions, all ruling on the 2001 laws, but applying the new provision to the reasoning (Opinion 157/2011, 18 Oct. and Opinions 187, 188 and 189, 23 Nov., 195, 196, 197, 198 and 199, 13 Dec., and 203/2011, 14 Dec.).
17. Official translation (see www.congreso.es/consti/constitucion/indice/ index.htm, for a choice of the Spanish Constitution in different languages).
18. E. Cordero González, 'La reforma de la constitución financiera alemana en particular, el nuevo límite al endeudamiento de la federación y los Länder' [The Reform of the Financial Constitution in Germany], 29 Teoría y Realidad Constitucional (2012) p. 289 at p. 325-326.
19. F. Fabbrini, 'The Fiscal Compact, the "Golden Rule" and the Paradox of European Federalism', pending publication and available at SSRN (http://ssrn.com/abstract=2096227).
20. The regime is laid out in a Royal Decree (Real Decreto-ley 21/2012, de 13 de julio). See a summary in English at: www.thespanisheconomy.com/ SiteCollectionDocuments/en-gb/Public%20 Finances%20and%20Public%20Debt/ Public%20Finances/120713%20Regional%20Liquid ity%20Mechanism.pdf
21. Complaint No. 557-2013 was filed before the Court last Jan. 2013 (Recurso de inconstitucionalidad n. 557-2013), as published in the Official Gazette, 'Boletín Oficial del Estado' of 9 March 2013.
22. So far, Catalonia and Aragón have both passed budgetary stability laws (Cataluña: Ley 6/2012, de 17 de mayo, de estabilidad presupuestaria. Aragón: Ley 5/2012, de 7 de junio, de Estabilidad Presupuestaria de Aragón).
23. V. Ruiz Almendral, Estabilidad Presupuestaria y Gasto Público en España [Budgetary Stability and Public Spending in Spain] (Madrid, La Ley 2008) p. 269.
24. C. Colino and E. del Pino, 'Spanish Federalism in Crisis', in Paul Peterson and Daniel Nadler (eds.)), The Global Debt Crisis. Haunting U.S. and European Federalism (Washington, Brookings Institution Press 2013 (forthcoming)).
25. In a recent poll conducted by 'El Pais', 80% of respondents think the autonomous communities model should be 'reconsidered'. See also D. Gardner. 'Spain: Autonomy under Fire', Financial Times (August 15, 2012), www.ft.com/intl/cms/s/0/00d27e14-e63a-11e1-ac5f-00144feab49a. html#axzz245UeD4Zh.
26. C. Monasterio Escudero and J. Suárez Pandiello at Manual de Hacienda autonómica y local [Handbook of Local and Regional Finances] (Barcelona, Ariel 1998) p. 59.
27. data and conclusions at A. Cuenca, 'Estabilidad Presupuestaria y endeudamiento autonómico en la crisis' [Budgetary Stability and Regional Indebtment], Cuadernos de Derecho Público, May 2012 (the author, Alain Cuenca, directed the high office for the coordination of budgetary policies between the centre and subnational entities until 2011 (named Dirección General de Coordinación Financiera con las Comunidades Autónomas y con las Entidades Locales), so the article contains substantial information on the period 2008-2011)
28. A. de la Fuente (in particular: 'Qué reformas necesita el sistema de financiación regional?' [What Reforms Does the Regional Financing System Need?], at Fundación Sepi, May 2012, www.fundacionsepi.es/ciea/ Reforma%20Financiacion%20Autonomica% 20(Angel%20de%20la%20Fuente).pdf, visited14 May 2013)
29. La evolución de la financiación de las comunidades autónomas de régimen común, 1999-2009' [The Evolution of Regional Financing] (Mimeo) (Instituto de Análisis Económico, CSIC), http:// ideas.repec.org/p/aub/autbar/889.11.html.
30. A. Castells Oliveres, Hacienda Autonómica. Una perspectiva de federalismo fiscal. [Regional Finances. A Fiscal Federalism Perspective] (Barcelona, Ariel 1988).
31. C. Monasterio Escudero et al., Informe sobre el actual sistema de financiación autonómica y sus problemas. [Report on the Current System of Regional Finances] (Madrid Instituto de Estudios Fiscales 1995).
32. See examples and details of the financing systems at: V. Ruiz Almendral, 'The Asymmetric Distribution of Taxation Powers in the Spanish State of Autonomies: The Common System and the Foral Tax Regimes', 13(4) Regional and Federal Studies (2003)
33. (Routledge, Frank Cass Journal; V. Ruiz Almendral and F. Vaillancourt: 'Choosing to Be Different (or Not): Personal Income Taxes at the Subnational Level in Canada and Spain', 29 Papel de Trabajo del Instituto de Estudios Fiscales (2006), and, most recently
34. V. Ruiz Almendral, 'Sharing Taxes and Sharing the Deficit in Spanish Fiscal Federalism', 10(1) eJournal of Tax Research (2012) (Australia), p. 88-125
35. J. Martínez-Vázquez, 'Revenue Assignments in the Practice of Fiscal Decentralization', in N. Bosch and J.M. y Durán (eds.)), Fiscal Federalism and Political Decentralization. Lessons from Spain, Germany, and Canada (Cheltenham/Northampton, Edward Elgar 2008)
36. J. López-Laborda et al., 'The Practice of Fiscal Federalism in Spain', in A. Shah (ed.), The Practice of Fiscal Federalism: Comparative Perspectives (Quebec, The Forum of Federations McGill-Queen's University Press 2010) p. 287-316
37. A. Zabalza and J. López Laborda, 'The New Spanish System of Intergovernmental Transfers', 18 International Tax and Public Finance (2011) p. 750-786.
38. W.E. Oates, 'An Economist's Perspective on Fiscal Federalism', in W.E. Oates (ed.), The Political Economy of Fiscal Federalism (Toronto, Lexington Books 1977) p. 16.
39. R. Boadway, 'Recent Developments in the Economics of Federalism', in H. Lazar (ed.), Canada: The State of The Federation 1999/2000. Toward a New Mission Statement for Canadian Fiscal Federalism (Kingston, Institute of Intergovernmental Relations 2000) p. 51.
40. See F. Snyder, 'EMU Revisited: Are We Making a Constitution? What Constitution Are We Making?', in P. Craig and G. de Búrca (eds.)), The Evolution of EU Law (Oxford, Oxford University Press 1999) p. 418.
41. See R. Máiz and A. Losada, 'The Erosion of Regional Powers in the Spanish "State of Autonomies"', in F. Requejo and K.J. Nagel (eds.)), Federalism beyond Federations (Surrey, Ashgate 2011) p. 84 at p. 85-92.
42. The Consejo meets with closed doors and its minutes are not published, although its agreements eventually are, seewww.minhap.gob.es/es-ES/ Areas%20Tematicas/Financiacion%20Auto nomica/Paginas/ Consejo%20de%20Politica%20Fiscal%20y%20Financiera.aspx, visited 30 Aug. 2012
43. Communities have already had to undertake substantial measures to reduce spending. See details at: www.minhap.gob.es/es-ES/Paginas/20120621-PEF-CCAA. aspx, visited 30 Aug. 2012.
44. Xavier Sala i Martín, (among many others) has recently proposed full independence the only way out: see 'The Catalan Bail-Out',http:// salaimartin.com/randomthoughts/item/405-the-catalan-bailout.html, visited 31 Aug. 2012.
45. According to the latest (28 Aug. 2012) report by the National Institute of Statistics (INE), private consumption has plummeted following the reduction of salaries (see press release, www. ine.es/prensa/cntr0212.pdf, visited 29 Aug. 2012.
46. the grim perspectives published by the IMF, at www.imf.org/external/np/ sec/pn/2012/pn1287.htm, visited 29 Aug. 2012
47. See press release by the Council of 10 July 2012 (No. 12387/12), at www.consilium.europa. eu/uedocs/cms-Data/docs/pressdata/en/ecofin/131676.pdf, visited 31 Aug. 2012.
48. Available in English at www.thespanisheconomy.com/ SiteCollectionDocuments/en-gb/ Economic%20Outlook/Stability%20Programme%202013- 2016.pdf, visited 13 May 2013.
49. See the point made by M. Wolf, 'Mind the Gap: The Perils of Forecasting Output', Financial Times (8 Dec. 2011, on an article referring to the 'Office for Budgetary Responsibility' created in the UK.
50. See A. Callam, 'Drone Wars: Armed Unmanned Aerial Vehicles', XVIII(3) International Affairs Review (2010),www.iar-gwu.org/node/144#comment-739, visited 25 Nov. 2011.
51. J. Rawls, A Theory of Justice (Cambridge, MA, The Belknap Press of Harvard University Press 1971) (rev. edn. 1999) p. 118.