The government will increase the expense for the defense of 2% GDP without increasing taxes, with EU funds and without presenting budget
Without cutting social or environmental expenditure, without increasing taxes, without growing deficit or debt … and without general state budget approved this year. The square of the circle that the government has in front Increases defense expenses From 1.4% of the GDP which reached 2% last year to the end of this yearAs the president of the government, Pedro Sánchez, implies several lines of action to date.
The first is the 3,182 million euros of “mattress” that the manager obtained thanks to the good data closing data of last year. The increase in collection through taxes – thanks to the good progress of the economy, the attraction of employment, the increase in the consumption of families and the improvement of the benefits of the companies – has made it possible to reduce the hole of public accounts of up to 2.8%, below the 3% limit imposed by Brussels.
The two tenths “extra” are equal to those 3,182 million, who suppose About 30% of the 10,471 million euros involving the transition from 1.4 to 2% of the expenses of the GDP expected in 2025. This amount will join the investments in recent years until they reach a total figure of 33,123 million intended for safety and defense. It is not the only piece that the government will put on the Council to comply with NATO requirements and commitments with European partners.
The other would imply on the moving games of the Extension budgets of 2023 which are not performed because they are no longer necessary to allocate them to disbursements in this sector. For this specific operation it would not be necessary to have the approval of the congress of deputies. This is so thanks to a provision that has been incorporated in the public accounts of 2021.
In addition to everything above, Moncloa plans to use next generation European funds for this purpose and to use the financing structures that the European Investment Bank (Bei) and the European Central Bank (ECB) put on the table.
Recently, the first vice -president, María Jesús Montero, underlined that other possible ways to explore would be the use of a Part of the amount intended for emergency funds -Partid to which the executive can resort to exceptional situations, such as at the time of Dana-, in addition to authorizing new credits, an option that should pass through the plenary of the low chamber and receive its approval.
More than half of expenditure, employment or computer security
The increase of 10,471 million announced by Sánchez through its plan for the development and impulse of technology and the safety and defense industry must receive the approval of NATO. Of this amount, 35.45% will improve working conditionsthe preparation and equipment of the armed forces, i.e. about 3,712 million; Another 31.16% (3,262 million) will be used to develop and acquire telecommunication and computer security capabilities.
16.73%, just over 1,751 million, will be used to strengthen the role of the army in the management of natural emergencies and catastrophes, such as floods or fires, but also to improve the safety conditions of the 3,000 troops in peace missions abroad. Finally, 18.75% will go to production and acquire weapons, a percentage equivalent to about 1,963 million.
According to government calculations, the increase in defense investments will have positive effects on the economy. The estimates that Moncloa manages indicates the creation of about 100,000 jobs (36,000 direct and 60,000 indirects), since the progress of GDP could increase between four and seven tenths.
The government defended that most of the mobilized funds will remain in Spain, Since they provide that 87%, about 90,000 million, go to national companies and workers; and about 5% of European signatures. “We do not choose the crises, but we choose how to face and respond to those crises,” said Sánchez.
