Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Spain Passes Delayed Budget in Boost to Rajoy's Economic Program

Published 24/05/2018, 04:34 am
Updated 24/05/2018, 06:53 am
© Bloomberg. Mariano Rajoy

© Bloomberg. Mariano Rajoy

(Bloomberg) -- Spanish Prime Minister Mariano Rajoy won enough support in parliament to pass his long-delayed budget, boosting his claim to be the steward of the country’s economic expansion.

The budget passed by 177 votes in favor and 168 against with two abstentions. Five lawmakers from the Basque Nationalist Party voted to back the spending program, helping Rajoy’s minority government to secure passage of the bill in parliament on Wednesday.

Robust growth of the Spanish economy is one strong suit for Rajoy as he battles to shore up a government weakened by the campaign for Catalan independence and a slew of corruption scandals. Passage of the budget will offer Rajoy some respite by giving his People’s Party more time to devise a strategy to win back lost support ahead of elections due in 2020.

“What happened today in parliament is very good for Spain,” Rajoy said in comments after the budget was passed. “2018 will also be a positive year for the Spanish economy.”

The Basque nationalists said earlier on Wednesday that they would back the budget as an act of political responsibility.

The party had previously said they would oppose it as long as Rajoy continued with direct rule of Catalonia imposed after Carles Puigdemont, the former president of the region, attempted to declare independence in October. Joaquim Torra, a Puigdemont ally, took office as regional president earlier this month but Catalonia remains under emergency rule for now.

As part of the bill, the government is pledging to boost pensions as part of a pact with the PNV to ensure its support. The budget envisages growth of 2.7 percent for 2018 as Spain’s economic expansion stretches into a fifth year.

© Bloomberg. Mariano Rajoy

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.