Economics
Spain Is Suddenly Shy About Stimulus With Virus Out of Control
- Sanchez’s cabinet split on how far to go with fiscal spending
- EU has given euro members green light to support economy
Pedestrians walk down an almost-deserted Fuencarral Street in Madrid.
Photographer: Angel Navarrete/BloombergThis article is for subscribers only.
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The European Union just gave Spain the OK to spend its way through the coronavirus crisis.
But the left-wing government in Madrid is unsure whether to take full advantage. Such is the topsy-turvy world of the Covid-19 pandemic.
The socialist economy minister is trying to stop the deficit blowing out, while a former spending watchdog is urging her to open the taps to stop the economy collapsing. The cabinet meets Tuesday to thrash it out.