Artículos
Spain’s rising tax burden: Personal income tax under scrutiny
Autores:
Romero Jordán, Desiderio
Spain’s tax revenue rose sharply in 2024, led by strong growth in personal income tax, VAT, and corporate income tax. While this helped reduce the public deficit, the non-indexation of PIT has eroded real household incomes and intensified fiscal drag.
Improving valuations for Spanish and European banks
After years of trading below book value despite solid fundamentals, Spanish and European banks have seen a marked revaluation since late 2024, surpassing price to book value (P/BV) ratios of 1x. Improved margins have supported a strong recovery in valuations, narrowing the profitability gap with…
Spanish fiscal policy in the face of systematic budget rollover: Risks for stability and reform
Autores:
Lago Peñas, Santiago
Despite robust growth and a declining headline deficit in 2024, Spain’s underlying fiscal trajectory remains fragile due to persistent structural imbalances and high public debt levels. With the new EU fiscal framework taking effect and long-term spending pressures building, credible consolidation measures are becoming increasingly…
Spanish versus European bank exposure to sovereign risk
Autores:
Maudos, Joaquín
Spanish banks’ exposure to public debt has increased more sharply than the EU average, reaching 15.4% of total assets in 2024. Amortised cost accounting and international diversification help risk mitigation, while higher interest rates on public debt holdings have significantly boosted returns for the domestic…
Tensions in the U.S. and eurozone sovereign debt markets
Transatlantic divergence in fiscal and monetary policies is driving renewed volatility in sovereign bond markets, with U.S. Treasury yields elevated and eurozone spreads widening, particularly in Germany. Going forward, the lack of economic policy coordination could continue to generate episodes of instability in international financial…