Resumen de On the sustainability of the Spanish public budget performance

Pablo Hernández de Cos, Francisco de Castro Fernández

• In this paper, we address the issue of whether the current fiscal policy in Spain is sustainable. For this purpose we apply traditional empirical tests of fiscal sustainability proposed in the literature and, in addition, we introduce a deeper univariate analysis of the series involved. Our results show that a structural break seems to have taken place gradually in the Spanish budget performance, allowing to verifying the intertemporal borrowing constraint in a «strong sensen, which tneans that no problems in marketing public debt are expected to arise if fiscal variables follow the pattem of the past in the future.