Deficit puts us on the tail of Europe
We have seen in the previous article that Spain has borrowed over 1 billion euros So far this century, GDP…
We have seen in the previous article that Spain has borrowed over 1 billion euros So far this century, GDP growth has exceeded 600,000 million euros.
The need to borrow, as usual, arises when expenditure exceeds income, and is called in economics. loss,
The fact that Spain has to borrow 1 billion euros means that our deficit during this century has been at least 1 billion.
Obviously, this number gives chills, and if we even begin to think that one day it will have to be returned, the feeling of fear increases even more.
Of course, if all countries are alike and we are indebted to all, the least we can say is evil to many, consolation to fools, and therefore, think that there is a superior entity to fix our problems. Will come
What if we’re not all alike and if we’re also one of the worst people in the class? Can they suspend us, in this case the credit, and one day not be able to pay Government employeePensioner or provider?
Today we are going to see what happened in 2021, compare yourself with the rest of the European Union and Euro area economies.
The first thing we can understand is that we are not all the same when it comes to deficit, which is what communists like.
Thus we see that there are three countries in Europe that not only borrow but also generate surpluses in 2021: Norway, Denmark You Luxembourg,
How unfortunate that there are two Nordic countries that have excellent health and education and moreover, they are able to generate surpluses in their accounts and a third country, Luxembourg, which is the country with the most rent per person Europe’s and one of the 3 with the highest per capita income in the world. The myth of you going into debt for good health care and education is exactly the myth perpetuated by the old socialists and ignorant communists.
There are ten other countries that would serve the purposes of being less than 3% of losses Which Europe has been demanding for a long time. These states are Sweden, Lithuania, Cyprus, Ireland, Poland, Estonia, Netherlands, Finland, Portugal and Croatia. On this list we have our neighbors on the peninsula, ruled by a socialist who is less expensive than the Spanish. We also have frugal countries like Sweden and the Netherlands and we have emerging countries like Poland and Croatia, which are growing well above average.
Germany and Bulgaria outperform the EU and euro area averages. Germany is having a hard time digesting its mistakes of shutting down coal-fired power plants and nuclear power plants, and will have to go through a fairly difficult transition for a country that hasn’t had too many problems over the past 40 years.
From here come countries that are not performing well and among them is Spain, which is ranked 23 out of 29.
Pedro Sanchez You can be proud to have Spain at the tail end of the European wagon.
In 2021 we have again generated a deficit of around EUR 83,000 million, which added to 115,000 million in 2020, reaching 198,000 million, which equates to the need to borrow 200,000 million over two years.
Who bought us this loan?
for those who don’t remember European Central Bankone of the main culprits of inflation What we have has given the machine to print the euro permanently. In just two years, it has put 1.5 trillion on the market, 200,000 million to repurchase Spanish debt, and 1.3 trillion from the rest of Europe.
But this buyback party is over by July. What’s more: We’ve already had to go to the markets in April to ask for money, and we’ve had to finance ourselves at an interest rate of 1.8%, while the ECB has bought our debt at almost zero cost in interest until December 31st .
who will buy us from july Loan,
For now, we have to compete first with countries that have very little debt, such as SwedenThe Netherlands or Germany, which will be able to get money from the markets much cheaper than us and preferably, given their degree of solvency.
Therefore, we have what is called a financial “round” to sell Spain and they have to ask us to lend us money, to do so at good prices and to believe that we are going to be able to repay that debt. are when it becomes arrears..
Spain and . countries like ItalyWe are dependent on our eyes in debt, we are going to have problems and it will be difficult for them to lend us money, but the Italians have a president with solvency and we have a president that no one in Europe trusts.
Could it be that they don’t lend us money?
Sure it can be. But it never happens suddenly and not from today till tomorrow. First, interest rates start rising. When these exceed 3%, there will be a very rapid movement about what is going to happen to public spending and what measures are being taken to reduce it. If the answer were to continue with the communist model, rates would drop to 5%, and there would be a debacle from there.
B.C Interest rates will increase month by month, until the end of the year, and reach at least 1.5%. Unless inflation disappears, it will take a long time for countries to repurchase their debt.
That’s why we prepare to fly without a parachute from an aircraft flying at an altitude of 4,000 meters.
Deficit puts us on the tail of Europe