MADRID – Renegotiation of fiscal adjustment?

Prime minister Pedro Sánchez wants to ease the fiscal adjustment agreed with the EU before submitting a new budgetary plan.

The coalition of Socialists and left-wing party coalition wants more breathing space to increase social spending in contrast with the adjustment of around €8 billion (0.65% of GDP) requested for this year by the European Commission.

But the Eurogroup and the Commission expect Spain to follow the procedure and submit its budget including the adjustment requested, various EU sources told EURACTIV. There won’t be a renegotiation of the fiscal adjustment at this stage, although there are “the usual contacts at technical level” added an official.

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