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The public debt of the Spanish regions. Estimates of their fiscal consolidation efforts and scenarios of future evolution

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  • Carmen Marín
  • Diego Martínez

Abstract

The Spanish regional public debt to GDP ratio is the highest in Europe. In this paper, we study the evolution of the factors explaining the recent changes in this ratio from 2015 to 2023. Moreover, we estimate the fiscal consolidation efforts needed to achieve a determined level of public debt. Likewise, a macroeconomic model is calibrated to simulate the future evolution of regional public debt under different consolidation strategies. Our main conclusion indicates that fiscal consolidation efforts will be inevitably significant, if not unfeasible in some cases, to address the deleveraging process required by the reform of the European fiscal rules.

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  • Carmen Marín & Diego Martínez, 2024. "The public debt of the Spanish regions. Estimates of their fiscal consolidation efforts and scenarios of future evolution," Studies on the Spanish Economy eee2024-15, FEDEA.
    • Handle: RePEc:fda:fdaeee:eee2024-15
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