Senate Approves Constitutional Reform

 

Spain's upper house of Parliament - the Senate - voted in favour of a constitutional reform earlier today which will ensure budget deficit control to restore market confidence in the country's economic stability.

There was significant support from the ruling PSOE Socialists and the PP opposition, which reached the 60% required in order to approve the bill.

The resolution will go now return to lower house of parliament - congress - where it is expected to be voted on Thursday on its final form. This amendment to constitution, which is due to become operational in 2020, dictates that deficit in general budget can not exceed 0.4% of GDP except in times of natural disaster, recession, or extraordinary emergencies - and even then only with special parliamentary approval.

The constitutional reform intends to reassure markets with regards to Spain's debt-heavy public finances and the country's economic stability and ability to whether the financial storm over the coming months.

The reform was unanimously approved by congress last week with as the PSOE and PP Parties overruled the smaller and regional parties who were united in calling for a referendum.