The Spanish Constitutional Reform as a Consequence of the Economic Crisis and the Budgetary Stability

Abstract

In this paper, we are going to discuss what led Spain to carry out a constitutional reform. The reform that occurred was voted in with a large majority, however it also received a lot of criticism from the formal aspect and opportunity. The reform was brought on because of the economic crisis and the European conception of facing it. The aim was to combat the crisis from economic principles such as budgetary stability. The European Union requires Member States to meet deficit and debt requirements. The ratio of the annual government deficit to gross domestic product (GDP) should not exceed 3% at the end of the preceding financial year and the ratio of gross government debt to GDP should not exceed 60% at the end of the preceding financial year. Being outside such ratios can even entail sanctions. At the end of the article an analysis of the Japanese financial situation can be found, where the difference in debt ratios that far exceed the limits envisaged by the European Union can be seen.