Spanish Public Finances Through the Financial Crisis

35 Pages Posted: 6 Oct 2016

See all articles by Francisco Marti

Francisco Marti

Banco de España

Javier J. Pérez

Banco de España - Research Department

Date Written: October 5, 2016


Spain’s public finances have been under significant stress during the crisis, despite pre-crisis fiscal surpluses and low levels of public debt. The impact of the crisis and an initial phase of counter-cyclical activism exacerbated the existing (structural) fiscal vulnerabilities. To correct the fiscal imbalances, a significant number of bold policy actions were taken, affecting taxation, public spending, national fiscal rules and the structure of the public sector. In this paper we discuss the evolution of public finances in Spain during the financial crisis, framing crisis-related fiscal policy measures within medium-term economic trends and focusing on policy responses to the financial crisis. We also touch upon the main policy challenges ahead.

Keywords: fiscal policy, Great Recession, public deficit, public debt, Spanish economy

JEL Classification: E60, H12, H50, H60

Suggested Citation

Marti, Francisco and Perez, Javier J., Spanish Public Finances Through the Financial Crisis (October 5, 2016). Banco de Espana Working Paper No. 1620. Available at SSRN: or

Francisco Marti (Contact Author)

Banco de España ( email )

Alcala 50
Madrid 28014

Javier J. Perez

Banco de España - Research Department ( email )

Alcala 50
28014 Madrid


Here is the Coronavirus
related research on SSRN

Paper statistics

Abstract Views
PlumX Metrics