The Financial and Fiscal Policy Council seems to have gotten what they asked for: implementing the adjustment plans necessary for regional governments to meet their 2012 deficit objectives and giving a clear way for them to do it. It was key to cast light on regional government accounts, and the Ministry of Finance has deftly managed the business of forcing each government to explain their plans to their counterparts.
On Thursday some regional governments' dirty laundry came out from under the bed, and there were some ugly surprises. Madrid, Valencia and Castille-León were embarrassed for having declared a smaller-than-actual deficit for the 2011 fiscal year.
The discrepancy was significant for Madrid and Valencia, but less so for Castille-León. The worst consequence is that the national government had to revise its 2011 deficit figures, which further increases its unbalanced budget to a total of 8.9%. This level is intolerable. All three regions are governed by the People's Party and hold several legislative seats in congress, so there is no excuse for the discrepancy.
Aguire boasted of budget compliance in Madrid, and Fabra promised that his government would be more transparent after he ousted Camps. But the talk was trickery. The Ministry of Finance, which put pressure on Andalusia, should demand more transparency and fidelity from their own politicians and not allow any more trickery.
