SEFO - SPANISH AND INTERNATIONAL ECONOMIC & FINANCIAL OUTLOOK http://www.sefofuncas.com Last articles of SEFO issue Recent key developments in the area of Spanish financial regulation Prepared by the Regulation and Research Department of the Spanish Confederation of Savings Banks (CECA) 2025 budget http://www.sefofuncas.com/Fiscal-sustainability-in-Spain-and-Europe-Navigating-a-new-landscape/Recent-key-developments-in-the-area-of-Spanish-financial-regulation-15-5 octubre - 2026 Social Indicators 2025 budget http://www.sefofuncas.com/Fiscal-sustainability-in-Spain-and-Europe-Navigating-a-new-landscape/

Social-Indicators

octubre - 2026 Spain’s expenditure overshoot raises adjustment pressures for 2027 Net primary expenditure grew 4.8% in 2025 and is on track for 4.7% in 2026, both well above the pathway Spain committed to under its Medium-Term Fiscal-Structural Plan. The defence and energy-crisis escape clauses keep Spain within its 2026 deficit limit by a narrow margin, but a 0.3% of GDP adjustment, worth around 5.3 billion euros, still remains for 2027. Desiderio Romero-Jordán Public finances http://www.sefofuncas.com/Fiscal-sustainability-in-Spain-and-Europe-Navigating-a-new-landscape/Spains-expenditure-overshoot-raises-adjustment-pressures-for-2027 octubre - 2026 Economic Indicators 2025 budget http://www.sefofuncas.com/Fiscal-sustainability-in-Spain-and-Europe-Navigating-a-new-landscape/

Economic-Indicators

octubre - 2026 Spain′s fiscal policy after three years of budget rollovers Spain has operated under a rolled-over budget since 2023, and yet State and Social Security spending have climbed 14% and 20%, respectively, through a series of ad-hoc allocation adjustments which have helped meet one-off contingencies and investment targets funded from European funds. However, the lack of comprehensive budgetary planning has tended to weaken fiscal policy’s capacity to respond coherently to new priorities. Raymond Torres Spanish economy http://www.sefofuncas.com/Fiscal-sustainability-in-Spain-and-Europe-Navigating-a-new-landscape/Spains-fiscal-policy-after-three-years-of-budget-rollovers octubre - 2026 Spanish economic forecasts panel: September 2026 Funcas Economic Trends and Statistics Department 2025 budget http://www.sefofuncas.com/Fiscal-sustainability-in-Spain-and-Europe-Navigating-a-new-landscape/Spanish-economic-forecasts-panel-September-2026 octubre - 2026 Spain′s fiscal consolidation: Falling short of its economic momentum Spain comfortably outperformed its 2025 deficit and debt targets under the Medium-Term Fiscal-Structural Plan, supported by stronger-than-expected nominal growth; however, the fiscal adjustment linked to the committed expenditure path does not adjust to stronger economic performance, resulting in a structural consolidation effort that fell short of what would have been warranted by the improved macroeconomic environment. With spending pressures set to increase, a more ambitious adjustment will be needed in the years ahead. Diego Martínez-López Fiscal policy http://www.sefofuncas.com/Fiscal-sustainability-in-Spain-and-Europe-Navigating-a-new-landscape/Spains-fiscal-consolidation-Falling-short-of-its-economic-momentum octubre - 2026 Fiscal sustainability in Spain and Europe: Navigating a new landscape Letter from the Editors 2025 budget http://www.sefofuncas.com/Fiscal-sustainability-in-Spain-and-Europe-Navigating-a-new-landscape/Fiscal-sustainability-in-Spain-and-Europe-Navigating-a-new-landscape octubre - 2026 Defence spending and debt sustainability: The euro area′s fiscal rules post 2024 The EU′s new fiscal rules, in force since 2024, are already being tested by the need to finance higher defence spending and by a sharp rise in interest rates. The National Escape Clause carries a modest fiscal cost, but the framework′s debt sustainability analysis still rests on interest-rate assumptions that market developments have already overtaken. Daniel Gros Fiscal governance http://www.sefofuncas.com/Fiscal-sustainability-in-Spain-and-Europe-Navigating-a-new-landscape/Defence-spending-and-debt-sustainability-The-euro-areas-fiscal-rules-post-2024 octubre - 2026 The supervisory review and evaluation process (SREP) over a decade on: Consolidation, integration and simplification The EBA’s revised SREP Guidelines bring ESG, emerging risks and operational resilience into the core of bank supervision, alongside new rules for third-country branches and other regulatory developments. The result is a more flexible framework that seeks to focus supervisory attention on the areas of greatest risk. Aitana Bryant, Andrea Blana and Jaime Morillo Banking supervision http://www.sefofuncas.com/Fiscal-sustainability-in-Spain-and-Europe-Navigating-a-new-landscape/The-supervisory-review-and-evaluation-process-SREP-over-a-decade-on-Consolidation-integration-and-simplification octubre - 2026