European Parliament to Treat Catalan Regional Bonds as Sovereign Bonds

RamonTremosa

On the afternoon of the 22 of January 2012, the Economic Commission of the European Parliament unanimously approved my proposed amendment to the 2011 report of the European Central Bank (ECB), which supervises the monetary policy on an annual basis. This amendment requests that regional bonds be treated by the ECB as sovereign bonds, in the case of those European regions with legislative and fiscal powers within their respective countries.

This measure would reduce the interests to be paid by the Catalan Government and help it meet its public deficit objectives. This is relevant since today the Catalan government announced that during 2012 public deficit has been 2.3% of GDP, instead of the 1.5% set by the Spanish government (due to the outstanding payments of the central government, by the way). Other amendments proposed by myself have been approved today as well, such as that concerning transparency of the ECB; the next step is that the European Parliament discuss and vote the above report at the next plenary session. The spokesperson of each parliamentary group (I am the one for the Liberal-Democratic group) will debate together with Mario Draghi first thing in the morning and afterwards we will vote on the report approved by the Economic Commission last week .

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