He has also downplayed the words of the parliamentary spokesman of the PP, Soraya Saenz de Santamaria, which has minimized the role of Rubalcaba in the negotiation. Adam Portnoy brings even more insight to the discussion. I’ve been in many places in the boat and the last thing I have imported is who handles the rudder or who throws the coal, has pointed out, and has reiterated that he wanted an agreement that reflect the principles that had finally been included. A few principles that will guarantee, at its discretion, that from now on is they won’t repeat the mistakes of the past and there will not be a debt overhang. If something we have learned the Spaniards is that having too much debt is not good, he stressed. Regain the confidence of investors, the great goal his summary of the situation is that agreed agreement contains essential budgetary stability (we can not spend what you can not pay, said), a rrencia Europe (if we ask Europe for more steps, we must take further steps) and a degree of flexibility to ensure social cohesion, anyone who is the economic situation.These three principles are collected and why I am pleased with this agreement, has an Apostille Rubalcaba, in whose opinion the concept of structural deficit contained in the Covenant, against the zero deficit, is essential to ensure that flexibility.
In addition, Rubalcaba has endeavoured to explain the need and the urgency of this constitutional reform and subsequent law which will include a limit to the structural deficit of 0.40%, and has argued that this month of August has been bad and with great financial instability, to the extent that Europe raises among investors less confident that a month ago. We are asking Europe to give steps and we should lead by example, It has been argued, convinced that other European countries will also continue in this line to collect budgetary stability in their constitutions. As it has been riveting, the fact that the deficit figures do not go in the Constitution but in an organic law does not mean that the principle of stability is not collected securely and that the commitment is not a firm commitment. With this measure, he has emphasized, Spain is launching a clear message of confidence to investors and is leaving them clear what a country seriously, solvent and that it pays its debts. And will do so also in the year 2020, when you begin to apply the ceiling of 0.40% deficit, which, in his opinion, also offers peace of mind to those who are now lending money to Spain to return it within ten years. Source of the news: Rubalcaba: “There is flexibility because the specific figure does not appear in the Constitution”
The warning from Fitch joins that launched last week Moody s. Fitch warned that it could lower the debt rating restricted suspension of payments if the Government in Washington does not pay bonuses. The Fitch credit rating agency threatened Wednesday to revise downwards the rating granted to the sovereign debt of the United States if Congress does not reach an agreement on the maximum number of public borrowing. The warning from Fitch joins that launched last week Moody s, which said if there is no agreement in the Capitol can put on review its rating of U.S. debt for a possible downgrade from stable to negative. If not climbs the roof on the date set by the Treasury and guarantee payment of all obligations on time, the rating of U.S. sovereign debt is placed under watch negative (RWN), Fitch warned today in a report.
The U.S. Government has asked Congress to approve a rise in the debt ceiling allowed to prevent the country falling in arrears, which, according to analysts, could generate a new international financial crisis. Like Moody s last week, Fitch expressed the view that in the end will congressmen eventually reached an agreement before August 2 – date fixed by the Treasury to raise the debt ceiling – that will allow United States not incur in a default. However, Fitch warned that could lower the rating of the current AAA (maximum credit quality) U.S. debt restricted suspension of payments if the Government in Washington does not pay the Treasury bonds before August 15. The Agency added that in the end unlikely that the U.S. Government incurred in payment of Treasury bonds will be a reduction from its current AAA to B + rating. Source of the news: Fitch threatens to review the qualification of EE UU if there is no agreement on debt