Spain’s Stimulus Spending Binge Needs Debt-Cut Plan, De Cos Says

Bank of Spain Governor Pablo Hernandez de Cos is keeping up pressure on the government and lawmakers to ensure emergency spending on the coronavirus crisis is accompanied with a long-term plan to address the debts it will incur.

“The measures have to include prudent forecasts about what would be the results of proposed spending cuts or of a proposed increase in revenues -- and all based on a prudent macroeconomic forecast,” the European Central Bank policy maker said in an interview this week in Madrid. “Such an announcement would be very important in terms of credibility.”