Source: European Parliament
Question for written answer E-001553/2025
to the Commission
Rule 144
Fernando Navarrete Rojas (PPE), Dolors Montserrat (PPE)
The Commission and the Council have approved Spain’s medium-term fiscal plan, which sets an expenditure path consistent with reducing debt. However, on 31 March 2025, Spain’s Independent Authority for Fiscal Responsibility (IAFR) published its assessment of the pension system expenditure rule. In the assessment, it warns about increased financing requirements and questions the sustainability of public finances.
The fiscal plan was drawn up on the basis of an increase in social contributions of 1.8 % of GDP, which would reduce the adjustments needed to keep debt on a downward trajectory and allow for greater growth in net expenditure compared to the Commission’s path.
Nevertheless, the IAFR notes that, as the closure clause is not triggered, those increases will not apply in the short term. Instead, transfers from the central administration will need to be increased by 2.4 percentage points of GDP. Doing so will cause debt to rise and changes the key assumptions behind the fiscal plan.
In the light of the above:
In accordance with the Commission’s DSA model, in the wake of the IAFR’s new estimates regarding pension spending, is Spain’s approved expenditure path still in line with the debt reduction required?
Submitted: 16.4.2025