Check out this passage:
Transfers to regional governments and the country’s social-security system jumped 38% in the first half, but should be significantly lower in the second half, she added.
What is the basis for stating that the these payments should be significantly lower in the second half of the year? Do the payments decline seasonally? Were the higher payments in the first half due to a program that won’t exist in the second half? Is there empirical evidence that shows that the current budget cuts are having their desired effect?
I am not saying that there is not a reason why these payments will be lower. If there are factors that will lead to lower transfer payments in the second half, why didn’t the reporter report them?
Read this passage:
Ms. Fernández expressed confidence that recent austerity cuts—worth a total of 65 billion euros ($79.69 billion) over the next 2½ years—as well as previous steps will allow Spain to cut its government budget deficit to 6.3% of gross domestic product this year from 8.9% of GDP last year.
Now read this one:
The estimates released Tuesday don’t include budget figures from Spain’s regional governments, which are part of Spain’s overall deficit target of 6.3% of GDP.
How can Ms. Fernández say that budget targets will be met when she does not even know the region’s contributions to it when the regions account for HALF of the budget deficiit? Once again, this information is not being provided to us for some reason.
If you really think that Spain will hit their deficit target of 6.3% of GDP this year, then the banks have some Spanish bonds they’d like to sell you.