{"id":38844,"date":"2018-10-08T06:46:08","date_gmt":"2018-10-08T11:46:08","guid":{"rendered":"http:\/\/olduvai.ca\/?p=38844"},"modified":"2018-10-08T06:46:08","modified_gmt":"2018-10-08T11:46:08","slug":"spain-imf-highlights-rising-risks","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=38844","title":{"rendered":"Spain: IMF Highlights Rising Risks"},"content":{"rendered":"
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Spain: IMF Highlights Rising Risks<\/a><\/h3>\n<\/header>\n
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The International Monetary Fund can be criticized for many things, but its analysis of countries\u2019 debt risk tends to be worth a read.<\/p>\n

In this case, the International Monetary Fund\u00a0has once again warned Spain<\/a>\u00a0of the risk of reversing reforms and increasing imbalances.<\/span><\/p>\n

It asks to deepen in the labor reform to end structural unemployment and credible measures for the 2019 budget.<\/p>\n

The IMF is often criticized on many sides.\u00a0It is often accused of being \u201cneoliberal\u201d despite the fact that in almost all its recommendations aim to prevent spending cuts.\u00a0It is wrongly criticized, on many occasions, for being negative on countries.\u00a0It is exactly the opposite.\u00a0The IMF is often too diplomatic and, above all, undemanding with governments.<\/p>\n

A clearly diplomatic IMF has verified in its last report the important risks facing the Spanish economy. As\u00a0growth slows down more quickly than expected, the risks that threaten the recovery have increased and many of the socialist government\u2019s announcements could be counterproductive and accelerate a relapse.<\/p>\n

In a very diplomatic but forceful way, the IMF warns about the governments\u2019 optimistic and inflated estimates of tax revenues<\/strong>.\u00a0No wonder, because the average error in revenue estimates for new taxes in Spain is very important, an average of 5.8 billion euro annually.<\/p>\n

Inflated estimates are an easy trick to square budgets.\u00a0Making impossible estimates of tax revenue while spending increases are very real. Then, when deficits soar, blame an external enemy.<\/p>\n

The graph below shows the historical overestimation of tax revenues (5.8 billion euro per annum more tax revenues estimated than actually collected).<\/p>\n

\"Spain:<\/p>\n

The Spanish Treasury Inspectors themselves have warned: \u201cIt would also be very interesting that those who speak again and again of these striking figures will provide the studies on which they are based to compare them.\u00a0From previous unsubstantiated studies, inadequate and impossible proposals arise\u201d(Tax Inspectors, January 2015).<\/p>\n

\u2026click on the above link to read the rest of the article\u2026<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Spain: IMF Highlights Rising Risks The International Monetary Fund can be criticized for many things, but its analysis of countries\u2019 debt risk tends to be worth a read. In this case, the International Monetary Fund\u00a0has once again warned Spain\u00a0of the risk of reversing reforms and increasing imbalances. It asks to deepen in the labor reform […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[16957,195,418,434,690,743],"class_list":["post-38844","post","type-post","status-publish","format-standard","hentry","category-economics","tag-daniel-lacalle","tag-debt","tag-imf","tag-international-monetary-fund","tag-risk","tag-spain"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/38844","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=38844"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/38844\/revisions"}],"predecessor-version":[{"id":38845,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/38844\/revisions\/38845"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=38844"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=38844"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=38844"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}