Del Olmo recalls that to meet the growth of 2.1% will be crucial; economic developments in Spain and Europe

The Minister of Finance of the Junta de Castilla y León, Pilar del Olmo, has assured this Thursday that the macroeconomic scenario foreseen by the General Budgets of the Community for 2015, in which the regional economy would grow by 2.1 One hundred percent, rests on the basis of maintaining a favorable financing environment and that the evolution of the labor and economic conditions of the main trading partners, in reference to the rest of Spain and the states of the Euro Zone, will be “of crucial importance”.

This has been explained by Del Olmo in his appearance before the Finance Committee in the Cortes of Castilla y León, where he has detailed both the general lines of the regional accounts for 2015 and the budget directly managed by the Ministry he heads, with 81.4 million euros, which represents an increase of 0.53% with respect to the current year and 1.25% of the total of the Community (9,920.8 million).

For the year 2015, it is estimated that economic growth of 2.1% supported by an increase in the positive contribution of domestic demand to the annual variation of GDP (from 0.2 to 0.8 percentage points), and by the improvements in forecasts during 2014, which went from 0.7% a year ago to 1.4% today. But he warned that for this macroeconomic scenario “it rests on the basis of the effects of the various economic policy measures adopted – especially the fiscal reform – and on the assumption that a favorable environment is maintained from the point of view of view of financing.

Thus, it will be important for interest rates to remain low both in the short and long term, as a result of the lower risk premium and the improvement in liquidity. It will also be “of crucial importance”, according to Del Olmo, the evolution of the economic and labor conditions of the main trading partners (in particular, the rest of Spain and the Euro Zone).

In any case, he stressed, it is about budgets “to strengthen economic growth”, although he warned that “it is not exempt from downside risks, but that they can be overcome” just as, it has affected, “Spain it has overcome the downside risks that for the national economy were pointing towards during the second economic recession. ” In that sense, he pointed out that he preferred “not to remember” the difficulties that were experienced in 2012.

In summary, the positive forecasts are “direct consequence” of the change of trend of the economic cycle that “will be consolidated in 2015”, so that they comply with the commitments of reduction of the public deficit by 30%, going from 1% of GDP in 2014 to 0.7% in 2015, as well as the public debt target of 17% of GDP and the spending rule.

The best performance of the economic activity during 2015, has had an impact, will have its reflection in the labor market, because in terms of full-time equivalent jobs, with an annual average unemployment rate, predictably, around 19.8% of the active population.

Regarding public debt, amounting to 1,079 million euros has stressed that the overall allocation necessary to address it is reduced “significantly,” by 20.7% over 2014, as a result of the decline both the credits destined to the payment of interests and the reimbursement of the capital.

Interest payment

Thus, for example, some 64 million will be saved in the payment of interest, mainly due to the “improvement of the conditions of financing of the Community” derived from the fall of the differential with the German bond -prima risk- and “thanks to the monetary policy measures adopted by the European Central Bank, and especially structural reforms and fiscal consolidation efforts made by Spain and Castilla y León. ”

On the other hand, it has insisted on the reduction of the item for amortization coverage, with a decrease of 217.4 million euros -23.7% with respect to 2014-, based on the capital repayments that must be made in that period. exercise, especially the amortization of 633.7 million euros of various loans arranged with national and foreign financial institutions, including the European Investment Bank and the Development Bank of the Council of Europe, or the payment mechanism for suppliers- Mortgageonly payday loans without teletrack.

The strategy in the debt portfolio for 2015 will be to advance in the diversification of financing sources, with a greater weight of debt issuances for “the current attractiveness of this type of transaction among investors”. Likewise, it is intended to analyze the composition of the portfolio in order to reduce the cost of debt through the refinancing of those operations whose interest rate today is “comparatively more burdensome”.

After recalling other important developments, such as the reduction of taxes in relation to Personal Income Tax, the one-one property transfers and the Hydrocarbons, it has also had a Del Olmo message for Community officials, since it has had an impact on “since 2010 They have made a valuable contribution in order to guarantee the stability of public accounts “while maintaining the high quality and efficiency ratios.

Ministry of Finance

Within the budget corresponding to the counseling she leads, Pilar del Olmo has reviewed some of the main investments, since she has stressed that this chapter experiences a growth of 12.07% over 2014. Thus, she has cited the equipment of the new Process Center of Data -2.4 million euros-.

The infrastructure itself will be executed through the Patrimonial Society (Cylsopa) and will be built in the Military Hospital of Valladolid with a budget of 2.5 million euros plus VAT, with the forecast of awarding it before the end of this year. to be operational in July 2015.

3.7 and 2.6 million euros will also be allocated, respectively, for the licenses required by the corporate computer applications for electronic administration and for others used by the Board as a whole. For telephone 012, 2.5 million euros correspond, similar to the amount of 2014.

Other investment actions will be those of the integrated management of communications services of the corporate network of the Board (970,896 euros), monitoring and evaluation of actions financed with community funds (1.2 million).

Again, the counselor highlighted the reductions in both current expenses and services (-4.01%) “for the seventh consecutive year”, in the provision of telecommunications services (-25.15%) and in ordinary operating expenses, because savings of 4% in the electricity supply are achieved; 4.11% in heating oil and 5% in maintenance, thanks to the unification of contracts.

Finally, he cited the forecasts for the Cylsopa company, which, as he recalled, is financed by its own means and that in 2015 it expects to obtain similar benefits to those of 2014 (2.6 million euros). In addition to the construction of the CPD, will be responsible for the project of creating a biomass heat network for several buildings of the Board in the area of Huerta del Rey, in Valladolid, and the analysis of studies such as the audit of lighting of the headquarters of the ministries of Finance and Economy, in which it is estimated you can save 500,000 euros in 15 years.

He also recalled that the Plan for the Disposal of Real Estate will be deepened, with the search of possible buyers or the determination of the most appropriate operations. However, the spokesman of the PSOE in the Commission, José Francisco Martín, has claimed more information about the buildings that will be sold.