Testimony before the Congress of Deputies Budget Committee on 25 October 2021 and before the Senate Budget Committee on 30 November 2021 in relation to the Draft State Budget for 2022

The Governor’s testimony is part of the discussion of the Draft State Budget for 2022. The Budget underpins the fiscal policy considerations ahead of a gradual recovery in the Spanish and global economy, following the deep-seated economic crisis prompted by the COVID-19 pandemic. His testimony before the Congress of Deputies Budget Committee begins with an analysis of developments in the Spanish economy and the macroeconomic outlook. He sets out the latest national and international developments, along with the sources of uncertainty set to influence how economic activity evolves in the coming years. Against this background, he frames his view of the role of economic policies. In connection with the Draft State Budget, he offers his assessment of the attendant macroeconomic forecast, government receipts and spending, the resulting fiscal policy stance and public debt dynamics. He further considers the main challenges for Spanish fiscal policy in the medium and long term, which are structured around two closely linked axes: shoring up the sustainability and improving the quality of public finances. He concludes with some brief thoughts on the reform of the Stability and Growth Pact. In his testimony before the Senate Budget Committee, the Governor updates the information on the economic situation according to the latest information available and analyses in greater detail the latest inflation developments, their causes and how long they may last, and their impact on the European Central Bank’s monetary policy.