Spending cutback plans for Spanish regional governments have achieved enough so far. No government will have to undergo an intervention if they apply with their budgets, but all will need to improve their track record and complete objections that they outline.
Doing so will win true approval from global markets and Spanish national government. But the approval won?t come easy, because the budget year has already progressed quite a bit and they will have to comply with reforms by not passing their deficit marks by more than 1.5%.
Under current circumstances, there is no option to miss budget. Further, the Ministry of Finance is counting on a sanctioning mechanism and the possibility of an intervention to keep regional governments from missing their budget goals.
But the regional governments know that one region going over budget destroys the results for all regions. It is their collective responsibility to comply.
