Spanish Senators gave approval on Wednesday to a constitutional reform that would ensure budget deficit control to reassure markets about the country’s economic stability.
The resolution enjoyed the support of vast majority thanks to agreement between the two main parties, ruling Socialist Party and the opposition popular party, easily reaching the three fifth supports required.
The resolution will go now to lower house of parliament where it is expected to be voted on Thursday on its final form. This amendment to constitution, which will enter into force in 2020, states that deficit in general budget would not exceed 0.4 percent of gross domestic product (GDP) except in times of natural disaster, recession, or extraordinary emergencies and even then only with approval parliament.
The reform aims at reassuring markets over Spain’s debt-heavy public finances and the country’s economic stability and ability to respond to the vagaries of the next autumn.
The reform swept through the lower house eight days earlier with a huge majority as the ruling Socialists and main conservative opposition Popular Party overwhelmed opposition from most smaller parties, which want a referendum.
Spain is to be the country after Germany to approve to ensure its constitution the rule of budget stability, while countries such Italy and Portugal are expected to take this step to enhance the stability of European Economy.