JOHN CARLOS I

KING OF SPAIN

To all who present it and understand it.

Sabed: That the General Courts have approved and I come to sanction the following organic law.

PREAMBLE

Budget stability, constitutionally enshrined, is the basis for boosting growth and job creation in the Spanish economy, to ensure the well-being of citizens, to create opportunities for entrepreneurs and offer a more prosperous, just and supportive perspective for the future.

The safeguarding of budgetary stability is an essential tool for achieving this objective, both to ensure adequate funding for the public sector and the quality public services on which the budget is based. welfare system, such as to provide security for investors with regard to the ability of the Spanish economy to grow and meet our commitments.

The process of fiscal consolidation and the reduction of the public debt that allowed Spain's entry into the European Economic and Monetary Union was one of the main assets on which the long period of growth was cemented. of the Spanish economy until 2008. However, this year saw a global economic crisis, particularly severe at European level, whose effects were aggravated in our economy due to the high unemployment rate, the highest among the OECD countries. The sharp deterioration in public finances since that year has rapidly exhausted the margins of fiscal policy maneuver, now forcing a strong adjustment to restore the path to the balance of the budget and comply with the commitments of Spain to the European Union.

The economic crisis quickly highlighted the inadequacy of the discipline mechanisms of the previous Budget Stability Act. In the framework of this Law, the largest deficit of our Public Administrations was reached, with 11.2 percent of the Gross Domestic Product in 2009.

At the same time, the financial tensions unleashed on European markets highlighted the fragility of the European Union's institutional structure and the need to make progress in the process of economic integration, with the premise of greater coordination and fiscal and budgetary responsibility for the Member States. In this context, a number of legislative initiatives at European level aimed at strengthening common fiscal rules and developing greater economic and fiscal supervision have been adopted in recent months. The European Fiscal Pact, the enhanced coordination, surveillance and surveillance in budgetary matters, accompanied by the development of the financial stability mechanism to provide a joint response to the stresses of the financial markets, constitute the framework of economic governance that defines a strengthened European Union capable of meeting the demanding challenges of the new international economic scenario.

This situation calls for a strong economic policy based on two complementary axes that are reinforced: fiscal consolidation, that is, the elimination of the structural public deficit and the reduction of public debt, and structural reforms. But beyond this immediate response, it is necessary to consolidate the economic and fiscal policy framework that allows for permanent security of economic growth and job creation. This is a challenge that we must reach out of Europe's hand, actively participating in the design of policies and strategies that define new economic governance, and rigorously applying the demands of it.

The guarantee of budgetary stability is one of the keys to economic policy that will contribute to strengthening confidence in the Spanish economy, will facilitate the uptake of financing under better conditions and, with this, will make it possible to recover the path of economic growth and job creation. In September 2011, this conviction led to the reform of Article 135 of the Spanish Constitution, introducing to the highest normative level of our legal order a fiscal rule that limits the public deficit of a structural character in our country and limits public debt to the reference value of the Treaty on the Functioning of the European Union. The new article 135 establishes the mandate to develop the content of this article in an Organic Law before June 30, 2012. With the approval of the present Organic Law on Budgetary Stability and Financial Sustainability of Public Administrations, full compliance with the constitutional mandate is given.

But, moreover, the reform of the Constitution also seeks to express Spain's clear commitment to the demands of coordination and definition of the common stability framework of the European Union. For this reason, the reference to European stability regulations, both in the Constitution and in the Organic Law, is constant, and Spain is one of the first countries to incorporate the European economic governance package into its national law. Internal legal. In addition, this law complies with the Treaty on Stability, Coordination and Governance in the Economic and Monetary Union of 2 March 2012, ensuring a continuous and automatic adaptation to European legislation.

The three objectives of the Law are: Ensuring the financial sustainability of all public administrations; strengthening confidence in the stability of the Spanish economy; and strengthening Spain's commitment to the Union European Union in the field of budgetary stability. The achievement of these three objectives will help to consolidate the economic policy framework geared to economic growth and job creation.

The first novelty of the Law is its own title, as it incorporates financial sustainability as the guiding principle of the financial economic performance of all Spanish Public Administrations. This is intended to reinforce the idea of stability, not only at a time of time, but on a permanent basis, which will help pave the way for the challenges that our welfare system faces in the medium and long term.

Unlike the previous legislation, the Law regulates the budgetary stability and financial sustainability of all public administrations, both the State and the Autonomous Communities, in a single text. Local and Social Security. This improves consistency in legal regulation, implies greater clarity of the Law and conveys an idea of equality in the budgetary, responsibility and institutional loyalty requirements among all public administrations.

This Law consists of 32 articles, 3 additional provisions, 4 transitory, 1 repeal and 7 endings, and is structured in six chapters. Chapter I (Scope) determines the object and scope of the subjective application of the Law. The public sector is defined on the basis of the European System of National and Regional Accounts, as this is the definition adopted by European legislation.

Chapter II (General Principles), which is intended for the general principles of the Law, maintains the four principles of previous legislation-budgetary stability, pluriannuality, transparency and effectiveness and efficiency in the The allocation of public resources-reinforcing some of its elements, and introducing three new principles: financial sustainability, accountability and institutional loyalty. The principle of budgetary stability is defined as the balance or surplus situation. It will be understood that this situation is reached when public administrations do not incur structural deficits. This principle is reinforced by the principle of financial sustainability, which enshrines budgetary stability as a permanent financial conduct for all public administrations. The inclusion in the Law of the principle of institutional loyalty should also be highlighted as a guiding principle for harmonising and facilitating collaboration and cooperation between different administrations in budgetary matters.

Chapter III (Financial Stability and Financial Sustainability), dedicated to budgetary stability and financial sustainability, introduces important new developments in our legislation. All public administrations must present a balance or surplus, without being able to incur structural deficits. However, the State and the Autonomous Communities may present structural deficits in the exceptional situations assessed in the law: natural disasters, economic recession or extraordinary emergency situations, situations which must be appreciated by the absolute majority of the Congress of Deputies.

The chapter also incorporates the spending rule set out in European legislation, under which the expenditure of the Public Administrations may not increase above the rate of reference growth of the Product Gross domestic. This rule is complete with the mandate that when higher revenues are obtained than expected, these will not be used to finance new expenses, but the higher revenues will be directed towards a lower appeal to indebtedness.

Also, the debt limit of the Public Administrations is fixed, which cannot exceed the reference value of 60 percent of the Gross Domestic Product established in European legislation, except in the same circumstances. exceptional in that structural deficits can be presented. In addition, the absolute priority of payment of interest and capital of public debt is established against any other type of expenditure, as set out in the Constitution, which is a resounding guarantee to investors.

The criteria for establishing the objectives of budgetary and public debt stability for each of the Public Administrations and individually for the Autonomous Communities are regulated.

Finally, the reports on compliance with the objectives of budgetary stability, public debt and the spending rule are included. It will report on the achievement of the objectives both in the draft budget and in the initial budget and in its implementation. Verification of compliance in the pre-implementation stages shall allow for preventive action in case of risk and for the adoption, if necessary, of corrective measures.

Chapter IV (Preventive, corrective and coercive measures) develops such measures in three different sections. In the first section an automatic prevention mechanism is introduced to ensure that no structural deficit is incurred at the end of each financial year, as well as a debt threshold of a preventive nature to avoid exceeding the limits. set.

The Law establishes an early warning mechanism, similar to that existing in European legislation, consisting in the formulation of a warning that will allow the necessary corrective measures to be anticipated in the event that they are (a) the risk of non-compliance with the objectives of stability, public debt or the expenditure rule. The non-adoption of measures involves the implementation of corrective measures.

The following two sections are an expression of the responsibility of each Administration in the event of non-compliance with the objectives of budgetary stability provided for in Article 135.5 (c) of the Constitution. Failure to comply with the stability objective will require the presentation of an economic and financial plan that will allow the correction of the deviation within one year. The Law regulates the content-which, among other things, must identify the causes of the deviation and the measures that will allow to return to the objectives-the processing and monitoring of these plans.

A different treatment is given in the case of a deficit due to exceptional circumstances (natural disasters, economic recession or extraordinary emergency). In such cases, a rebalancing plan should be presented to allow the balance to be restored, detailing appropriate measures to deal with the budgetary consequences arising from these exceptional situations.

The Law provides for automatic correction measures. Thus, the fulfilment of the stability objectives will be taken into account both for the authorisation of debt issues, as well as for the granting of grants or the subscription of agreements. In addition, in the event of non-compliance with an economic and financial plan, the responsible administration must automatically approve an unavailability of credits and constitute a deposit. Finally, in the case of non-availability of agreements by the Autonomous Communities or of failure to agree on the measures proposed by the committee of experts, the Law enables the adoption of Article 155 of the Constitution for adoption. of measures to force their enforced compliance. In similar terms, the possibility of imposing forced compliance measures on the Local Corporations is established, or the dissolution of the Local Corporation will be available.

Chapter V (Transparency) develops the principle of transparency, reinforcing its elements, among which the public administration must establish the equivalence between the budget and the accounting system. This is the information that is being sent to Europe to verify that our commitments on budgetary stability are being met. Also, prior to their approval, each Public Administration must provide information on the main lines of its budget, in order to comply with the requirements of European legislation, in particular forecasts contained in Council Directive 2011 /85/EU of 8 November 2011 on the requirements applicable to the budgetary frameworks of the Member States. Finally, the information to be provided is expanded in order to improve coordination in the economic and financial performance of all public administrations.

Chapter VI (Budgetary management), relating to budgetary management, strengthens budgetary planning through the definition of a medium-term budgetary framework, which is in line with the provisions of the Directive. of budgetary frameworks mentioned above. As an important novelty, the Law extends the obligation to present a spending limit, up to now only for the State, the Autonomous Communities and Local Corporations, as well as the allocation in their budgets of a fund of contingency to meet unforeseen and non-discretionary needs. Finally, the target of the budget surplus, to be applied to the reduction of net borrowing, or to the Reserve Fund in the case of Social Security, is regulated.

In the additional provisions, the Law establishes an extraordinary liquidity support mechanism for those Autonomous Communities and Local Corporations that request it. Access to this mechanism will be conditional upon the presentation of an adjustment plan to ensure that the objectives of budgetary stability and public debt are met and will be subject to rigorous monitoring conditions, information and extraordinary adjustment measures. The Public Administration that accesses this aid will send quarterly information on endorsements, credit lines, commercial debt, derivatives transactions, etc. It shall also be the legal-administrative jurisdiction of the competent authority to hear the appeals against the acts and resolutions issued pursuant to this law.

The principle of liability for non-compliance with Community law rules, which is configured as that of public administrations and any other entity, is also regulated in an additional provision. public sector which, in the exercise of its powers, has failed to fulfil obligations arising from the rules of European Union law, resulting in the Kingdom of Spain being sanctioned by the European institutions, in the part that is attributable, liabilities arising from such non-compliance.

With regard to the transitional provisions, the Law provides for a transitional period up to the year 2020, as set out in the Constitution. During this period, a path of reduction of budgetary imbalances is determined to the limits of the Law, i.e. the structural balance and a public debt of 60% of GDP.

The derogatory provision expressly repeals the Organic Law 5/2001 of 13 December, which is complementary to that of budgetary stability, as well as the recast text of the General Law on Budgetary Stability, adopted by Real Legislative Decree 2/2007 of 28 December, and how many provisions are contrary to the provisions of this standard.

Finally, among the final provisions, the constitutional competences of the present organic law are related. Similarly, the necessary references are made to the own regimes of Ceuta and Melilla, Navarre and the Basque Country, and the Council of Ministers is enabled to give the necessary regulatory provisions for the development of the present organic law.

CHAPTER I

Scope

Article 1. Object.

The purpose of this Law is to establish the guiding principles, which link all the public authorities, to which the budgetary policy of the public sector should be adapted. budget and financial sustainability, as a guarantee of sustained economic growth and job creation, in the development of Article 135 of the Spanish Constitution.

The procedures necessary for the effective implementation of the principles of budgetary stability and financial sustainability, in which the participation of the coordination bodies are guaranteed, are also established. (a) institutional arrangements between the public authorities in the field of fiscal and financial policy; the establishment of the deficit and debt limits, the exceptional circumstances in which they can be overcome and the mechanisms for correcting deviations; and the instruments to make the responsibility of each administration effective Public in the event of non-compliance, in the development of Article 135 of the Spanish Constitution and in the framework of European legislation.

Article 2. Scope of subjective application.

For the purposes of this Law, the public sector is considered to be integrated by the following units:

1. The general government sector, in accordance with the definition and delimitation of the European System of National and Regional Accounts approved by Council Regulation (EC) 2223/96 of 25 June 1996, which includes the following subsectors, Similarly defined according to this System:

(a) Central government, comprising the State and the central administration bodies.

b) Autonomous Communities.

c) Local Corporations.

d) Social Security Administrations.

2. The rest of the public entities, commercial companies and other public entities dependent on public administrations, not covered by the previous paragraph, will also have public sector consideration and will remain subject to the provisions of this Law that specifically refer to them.

CHAPTER II

General principles

Article 3. Principle of budgetary stability.

1. The preparation, approval and implementation of the budgets and other actions affecting the expenditure or revenue of the various subjects falling within the scope of this Law shall be carried out in a framework of budgetary stability, consistent with European legislation.

2. The budgetary stability of the general government shall mean the balance or structural surplus situation.

3. In relation to the subjects referred to in Article 2.2 of this Law, the budgetary stability shall mean the position of financial equilibrium.

Article 4. Principle of financial sustainability.

1. The actions of the Public Administrations and other subjects falling within the scope of this Law shall be subject to the principle of financial sustainability.

2. Financial sustainability shall mean the ability to finance present and future expenditure commitments within the limits of government deficit and debt, as laid down in this Law and in European legislation.

Article 5. Principle of pluriannuality.

The preparation of the budgets of the public administrations and other subjects falling within the scope of this law will be framed within a medium-term budgetary framework, compatible with the principle of annuality. governing the approval and implementation of the budget, in accordance with European legislation.

Article 6. Principle of transparency.

1. The accounts of the general government and other subjects falling within the scope of this law, as well as their budgets and settlements, shall contain sufficient and adequate information to enable them to verify their situation. The European Union is a member of the European Parliament, the European Parliament, the European Parliament and the Council of the European Union. In this respect, the budgets and general accounts of the various administrations will integrate information on all subjects and entities within the scope of this law.

2. It is up to the Ministry of Finance and Public Administrations to provide the public availability of the economic and financial information related to the subjects integrated in the field of application of this Law, with the scope and periodicity that derive from the application of national rules and agreements and Community provisions.

Public Administrations shall provide all necessary information for compliance with the provisions of this Law or for the rules and agreements to be adopted in their development, and shall ensure the consistency of the rules and accounting procedures, as well as the integrity of data collection and processing systems.

3. The forecasts used for budgetary planning as well as the methodology, assumptions and parameters on which they are based shall also be subject to public availability.

Article 7. Principle of efficiency in the allocation and use of public resources.

1. Public expenditure policies should be framed within a framework of multiannual planning and programming and budgeting, taking into account the economic situation, the objectives of economic policy and the fulfilment of the principles of stability. budget and financial sustainability.

2. The management of public resources will be oriented towards efficiency, efficiency, economy and quality, to which end policies will be applied to rationalize expenditure and improve the management of the public sector.

3. The laws and regulations, in their preparation and approval stage, the administrative acts, contracts and collaboration agreements, as well as any other actions of the subjects included in the scope of this Law affecting the public expenditure or revenue present or future, shall assess its impact and effects, and be strictly subject to compliance with the requirements of the principles of budgetary stability and sustainability financial.

Article 8. Principle of responsibility.

1. Public Administrations that fail to comply with the obligations contained in this Law, as well as those that cause or contribute to the failure to comply with the commitments made by Spain in accordance with European regulations, will assume the liability of the non-compliance with the obligations arising from such non-compliance is attributable to them.

In the process of taking responsibility referred to in the preceding paragraph, the hearing of the administration or entity concerned shall be guaranteed in any event.

2. The State shall not assume or respond to the commitments of the Autonomous Communities, the Local Corporations and the entities provided for in Article 2.2 of this Law, which are linked or dependent on them, without prejudice to financial guarantees. mutual for the joint implementation of specific projects.

The Autonomous Communities shall not assume or respond to the commitments of the Local Corporations or the entities linked to or dependent on them, without prejudice to mutual financial guarantees for the joint implementation of specific projects.

Article 9. Principle of institutional loyalty.

The Public Administrations will be adapted in their actions to the principle of institutional loyalty. Each Administration shall:

a) Value the impact that your actions, on the matters referred to in this Law, could provoke in the rest of Public Administrations.

b) Respect the legitimate exercise of the powers that each Public Administration has attributed.

(c) To put in place, in the exercise of its own powers, the totality of the public interests involved and, in particular, those whose management is entrusted to other public administrations.

(d) to provide the other public authorities with the information they require about the activity they carry out in the exercise of their own powers and, in particular, that which results from the fulfilment of their obligations; provision of information and transparency in the framework of this Law and other national and Community provisions.

e) To provide, in the field, the active cooperation and assistance that the rest of the Public Administrations could obtain for the effective exercise of their competences.

Article 10. Provisions for the effective implementation of the Law and coordination mechanisms.

1. The subjects falling within the scope of this Law will be obliged to establish in their budgetary rules the instruments and procedures necessary to adapt them to the application of the principles contained in this Law. in this Act.

2. It is up to the Government, without prejudice to the powers of the Fiscal and Financial Policy Council of the Autonomous Communities and the National Commission of Local Administration, and in any case respecting the principle of financial autonomy of the Autonomous Communities and Local Corporations, to ensure the application of these principles in all the subjective scope of this Law.

3. The Government will establish coordination mechanisms among all public administrations to ensure the effective implementation of the principles contained in this Law and its consistency with European legislation.

CHAPTER III

Budget stability and financial sustainability

Article 11. Implementation of the principle of budgetary stability.

1. The preparation, approval and implementation of the budgets and other actions affecting the expenditure or revenue of the general government and other entities forming part of the public sector shall be subject to the principle of stability. budget.

2. No Public Administration may incur a structural deficit, defined as a cyclically adjusted deficit, net of exceptional and temporary measures. However, in the case of structural reforms with long-term budgetary effects, in accordance with European legislation, a structural deficit of 0.4 per cent of the Internal Product may be achieved in the general government. Gross domestic product expressed in nominal terms, or as established in European legislation where it is lower.

3. Exceptionally, the State and the Autonomous Communities may incur structural deficits in the event of natural disasters, severe economic recession or extraordinary emergency situations which escape the control of public administrations and The Committee of the European People's Party (MEPs), the Committee of the European People's Party, and the Committee of the European People's Party. This temporary deviation cannot endanger fiscal sustainability in the medium term.

For the past effects the severe economic downturn is defined in accordance with the provisions of European legislation. In any case, it will be necessary to have a negative annual real growth rate of the Gross Domestic Product, according to the annual accounts of the national accounts.

In such cases, a rebalancing plan should be approved to allow for the correction of the structural deficit, taking into account the exceptional circumstance that caused the non-compliance.

4. Local Corporations will have to maintain a balanced position or budget surplus.

5. Social Security Administrations will maintain a balance or budgetary surplus situation. Exceptionally, they may incur a structural deficit in accordance with the objectives and conditions laid down in the regulations of the Social Security Reserve Fund. In this case, the maximum structural deficit admitted for the central administration shall be reduced by the amount equivalent to the Social Security deficit.

6. For the calculation of the structural deficit, the methodology used by the European Commission in the framework of the budgetary stability regulation shall apply.

Article 12. Spending rule.

1. The variation in the computable expenditure of the Central Administration, the Autonomous Communities and the Local Corporations, will not be able to exceed the reference rate for the growth of the medium-term Gross Domestic Product of the Spanish economy.

However, where there is a structural imbalance in the public accounts or a public debt higher than the target set, the growth of the computable public expenditure will be adjusted to the path established in the respective public accounts. economic-financial and rebalancing plans provided for in Articles 21 and 22 of this Act.

2. Expenditure shall be taken into account for the purposes referred to in the preceding paragraph, non-financial jobs defined in terms of the European System of National and Regional Accounts, excluding interest on the debt, non-discretionary expenditure in unemployment benefits, the part of the expenditure financed from the European Union or other public administrations and the transfers to the Autonomous Communities and the Local Corporations linked to the systems of funding.

3. It is up to the Ministry of Economy and Competitiveness to calculate the reference rate for the growth of the medium-term Gross Domestic Product of the Spanish economy, according to the methodology used by the European Commission in application of its rules. This fee shall be published in the situation report of the Spanish economy referred to in Article 15 (5) of this Law. It will be the reference to be taken into account by the Central Administration and each of the Autonomous Communities and Local Corporations in the preparation of their respective Budgets.

4. Where regulatory changes involving permanent increases in tax collection are adopted, the level of the amount of expenditure resulting from the application of the rule in the years in which the collection increases are obtained may be increased by the amount of equivalent.

When regulatory changes are approved that result in decreases in collection, the level of computable expenditure resulting from the application of the rule in the years in which the collection decreases occur shall be decrease in the equivalent amount.

5. The revenues that are earned above the forecast will be fully allocated to the reduction of the level of public debt.

Article 13. Implementation of the principle of financial sustainability.

1. The volume of public debt, defined in accordance with the Protocol on Excessive Deficit Procedure, of the general government shall not exceed 60% of the national gross domestic product expressed in nominal terms, or which is established by European legislation.

This limit will be distributed according to the following percentages, expressed in nominal terms of the national gross domestic product: 44 percent for the central government, 13 percent for the whole of the Community Autonomous and 3 percent for the set of Local Corporations. If, as a result of the obligations under European law, a debt limit of 60% was found, the distribution of the debt between central government, autonomous communities and local corporations would be respected. proportions previously exposed.

The public debt limit for each of the Autonomous Communities will not exceed 13 percent of its regional gross domestic product.

2. The Public Administration exceeding its public debt limit shall not be able to carry out net borrowing operations.

3. The limits of public debt can only be exceeded by the circumstances and in the terms provided for in Article 11.3 of this Law.

In such cases, a rebalancing plan should be approved to allow the debt limit to be reached, taking into account the exceptional circumstance that caused the non-compliance.

4. The State and the Autonomous Communities shall be authorized by law to issue public debt or to contract credit.

The State's authorization to the Autonomous Communities to carry out credit operations and debt issues, in compliance with the provisions of Article 14.3 of the Organic Law 8/1980, of 22 September, of Financing of the Autonomous Communities shall take into account the fulfilment of the objectives of budgetary stability and public debt, as well as the fulfilment of the principles and the rest of the obligations arising from the application of this Law.

5. The authorization of the State, or in its case from the Autonomous Communities, to the Local Corporations to carry out credit operations and debt issues, in compliance with the provisions of Article 53 of the Recast Text of the Regulatory Law Local Haciendas, approved by Royal Legislative Decree 2/2004 of 5 March, will take into account the fulfilment of the objectives of budgetary stability and public debt, as well as the fulfilment of the principles and obligations that derive from the application of this Law.

Article 14. Absolute priority for the payment of public debt.

The budgetary appropriations to satisfy the interest and capital of the public debt of the Administrations shall always be understood as being included in the state of expenditure of their budgets and shall not be subject to amendment or modification as long as they conform to the conditions of the Law of issuance.

The payment of interest and capital of public debt of the Public Administrations shall be of absolute priority against any other expenditure.

Article 15. Establishment of the objectives of budgetary stability and public debt for the whole of public administrations.

1. In the first half of each year, the Government, by agreement of the Council of Ministers, at the proposal of the Minister of Finance and Public Administrations and prior report of the Fiscal and Financial Policy Council of the Autonomous Communities and of the National Local Administration Commission as regards the scope of the same, shall set the objectives of budgetary stability, in terms of capacity or need for financing in accordance with the definition contained in the European System of Accounts National and Regional, and the public debt target for the three financial years The following are the following for both the general government and each of its sub-sectors. Those objectives shall be expressed in percentage terms of the nominal national gross domestic product.

For the purposes set out in the preceding paragraph, the Ministry of Finance and Public Administrations shall forward the respective proposals for objectives to the Fiscal and Financial Policy Council before 1 April of each year. Autonomous Communities and the National Commission of Local Administration, which shall issue their reports within a maximum of 15 days from the date of receipt of the proposals in the General Secretariat of the Fiscal Policy Council and Financial of the Autonomous Communities and in the Secretariat of the National Commission of Local Administration.

The agreement of the Council of Ministers will include the non-financial spending limit of the State Budget referred to in Article 30 of this Law.

2. For the purpose of fixing the objective of budgetary stability, account shall be taken of the expenditure rule set out in Article 12 of this Law and the structural balance achieved in the preceding period.

3. The fixing of the public debt target will be consistent with the objective of established budgetary stability. If, in the cases provided for in Article 13.3, the limits laid down in Article 13.1 of this Law are exceeded, the objective shall be to ensure a path of reduction of public debt in line with European legislation.

4. The recommendations and opinions issued by the institutions of the European Union on the Spanish Stability Programme or as a result of the European Union's stability programme will be taken into account in the setting of the objectives of budgetary stability and public debt. other European supervisory mechanisms.

5. The proposal for the establishment of the objectives of budgetary and public debt stability shall be accompanied by a report assessing the economic situation envisaged for each of the years referred to in the time horizon for fixing of those objectives.

This report will be prepared by the Ministry of Economy and Competitiveness, after consulting the Banco de España, and taking into account the forecasts of the European Central Bank and the European Commission. It shall contain the economic table for a multiannual horizon specifying, among other variables, the forecast for the development of the gross domestic product, the production gap, the reference rate of the Spanish economy provided for in the Article 12 of this Law and the cyclical balance of the general government, distributed among its subsectors.

6. The agreement of the Council of Ministers containing the objectives of budgetary stability and public debt shall be forwarded to the General Cortes together with the recommendations and the report referred to in paragraphs 4 and 5 of this Article. Article. In succession and after the corresponding debate in plenary, the Congress of Deputies and the Senate will decide to approve or reject the objectives proposed by the Government.

If the Congress of Deputies or the Senate rejects the objectives, the government, within a maximum of one month, will submit a new agreement that will be submitted to the same procedure.

7. Approved the objectives of budgetary stability and public debt by the General Cortes, the elaboration of the draft budget of the Public Administrations will have to accommodate these objectives.

8. The report of the Fiscal and Financial Policy Council referred to in paragraph 1 of this Article, as well as the agreements on the same subject for the implementation of the objectives of budgetary stability and public debt, shall be publish for general knowledge.

Article 16. Establishment of the individual objectives for the Autonomous Communities.

Approved by the Government the objectives of fiscal stability and public debt under the conditions set out in Article 15 of this Law, the Ministry of Finance and Public Administration will formulate a proposal for a objectives of budgetary stability and public debt for each of the Autonomous Communities.

On the basis of the above proposal, the Government has submitted a report by the Fiscal and Financial Policy Council that will have to decide within the period of 15 days from the date of receipt of the proposal in the Council Secretariat. Fiscal and Financial Policy of the Autonomous Communities shall set the objectives of budgetary stability and public debt for each of them.

Article 17. Reports on compliance with the objectives of budgetary stability, public debt and the spending rule.

1. Before October 15, the Ministry of Finance and Public Administrations will make public, for general knowledge, a report on the adequacy of the objectives of stability, debt and the rule of expenditure of the information to which the Article 27, which may include recommendations in case of an assessment of deviations.

2. Before 1 April each year, the Minister of Finance and Public Administrations shall submit to the Government a report on the degree of compliance with the objectives of budgetary stability and public debt in the initial budgets of the Member States. Public Administrations. Similarly, the report will collect compliance with the expenditure rule of the Central Administration and the Autonomous Communities ' budgets.

3. Before 1 October of each year, the Minister of Finance and Public Administrations shall submit to the Government a report on the extent to which the objectives of budgetary and public debt stability and the expenditure rule for the financial year are met. (b) above, as well as the actual evolution of the economy and deviations from the initial forecast contained in the report referred to in Article 15 (5) of this Law.

This report will also include a forecast of the degree of compliance in the current exercise, consistent with the information that is sent to the European Commission in accordance with European regulations.

4. The Minister of Finance and Public Administrations shall inform the Fiscal and Financial Policy Council of the Autonomous Communities and the National Commission of Local Administration, in their respective areas of competence, of the degree of compliance with those objectives.

5. The reports referred to in this Article shall be published for general knowledge.

CHAPTER IV

Preventive, corrective, and coercive measures

Section 1. Preventative Measures

Article 18. Automatic prevention measures.

1. Public administrations shall monitor the budgetary implementation data and adjust public expenditure to ensure that the objective of budgetary stability is not breached at the end of the financial year.

2. Where the volume of public debt is above 95 percent of the limits set out in Article 13.1 of this Law, the only borrowing operations allowed to the corresponding Public Administration will be those of treasury.

3. The government, in case of projecting a deficit in the long term of the pension system, will review the system by automatically applying the sustainability factor in the terms and conditions provided for in Law 27/2011 of August 1, on updating, updating and modernising the Social Security system.

Article 19. Risk warning for non-compliance.

1. In the event of a risk of non-compliance with the objective of budgetary stability, the objective of public debt or the rule of expenditure of the Autonomous Communities or Local Corporations, the Government, on a proposal from the Minister of Finance and Public Administrations shall provide a reasoned warning to the responsible administration after hearing the same. Given the warning, the government will notice the same for its knowledge to the Fiscal and Financial Policy Council, if the warning is an Autonomous Community, and to the National Commission of Local Administration, if it is a Local Corporation. Such warning shall be made public for general knowledge.

2. The warned administration will have one month to take the necessary measures to avoid the risk, which will be communicated to the Ministry of Finance and Public Administrations. If the measures are not taken or the Minister of Finance and Public Administration appreciates that they are insufficient to correct the risk, the corrective measures provided for in Articles 20 and 21 and 25 (1) (a) shall apply.

Section 2.

Article 20. Automatic correction measures.

1. In the case where the Government, in accordance with the reports referred to in Article 17 of this Law, finds that the objective of budgetary stability or public debt is not met, all the borrowing operations of the Unfulfilled Autonomous Community shall require authorization from the State. This authorisation may be carried out in a phased manner.

However, if the Autonomous Community had presented an economic-financial plan deemed appropriate by the Fiscal and Financial Policy Council, short-term credit operations that are not considered financing They shall not require State authorization.

2. In the case of non-compliance with the objective of budgetary stability or public debt of the Local Corporations included in the subjective area defined in Articles 111 and 135 of the Recast Text of the Law Regulatory Law Premises, all long-term borrowing operations of the local defaulting corporation, shall require authorization from the State or in its case from the Autonomous Community that has the financial protection assigned to it.

3. In the case of non-compliance with the objective of budgetary stability, public debt or the rule of expenditure, the granting of grants or the subscription of agreements by the Central Administration with Autonomous Communities Non-compliance shall require, prior to granting or underwriting, a favourable report from the Ministry of Finance and Public Administrations.

These measures shall also apply in the event of the prior warning provided for in Article 19 of this Law.

Article 21. Economic-financial plan.

1. In the event of non-compliance with the objective of budgetary stability, the objective of public debt or the spending rule, the non-compliant administration will formulate an economic and financial plan that will allow in one year the fulfillment of the objectives or the rule of expenditure, with the content and scope provided for in this Article.

2. The economic-financial plan shall contain at least the following information:

(a) The causes of the non-compliance with the established objective or, where applicable, failure to comply with the expenditure rule.

b) The trend forecasts of revenue and expenditure, under the assumption that no changes in fiscal and spending policies are occurring.

(c) The description, quantification and timing of the implementation of the measures included in the plan, indicating the budget items or extra-budgetary records in which they shall be accounted for.

d) The forecasts of the economic and budgetary variables for which the plan is part, as well as the assumptions on which these forecasts are based, in line with the report referred to in the report. paragraph 5 of Article 15.

e) A sensitivity analysis considering alternative economic scenarios.

3. In the event of non-courses in the Excessive Deficit Procedure of the European Union or other European supervisory mechanisms, the plan shall include any other additional information required.

Article 22. Rebalancing plan.

1. The administration which would have incurred the assumptions provided for in Article 11.3 of this Law shall present a rebalancing plan which, in addition to including the provisions of Article 21 (2), shall set out the path to be achieved by the objective of budgetary stability, by disaggregating the evolution of revenue and expenditure, and of its main items, which enable it to be fulfilled.

2. The administration which would have incurred the assumptions provided for in Article 13.3 of this Law shall present a rebalancing plan which, in addition to including the provisions of Article 21 (2), shall contain the following information:

(a) The path envisaged to achieve the public debt objective, by disaggregating the factors of evolution that allow for compliance with it.

b) An analysis of the dynamics of public debt that will include, in addition to the variables that determine their evolution, other risk factors and an analysis of the average life of the debt.

3. In the event of non-courses in the Excessive Deficit Procedure of the European Union or other European supervisory mechanisms, the plan shall include any other additional information required.

Article 23. Processing and monitoring of economic and financial plans and rebalancing plans.

1. The economic and financial plans and the rebalancing plans shall be submitted to the bodies referred to in the following paragraphs within a maximum of one month after the failure to comply or are assessed in the circumstances provided for in Article 3. Article 11.3, respectively. These plans must be approved by these bodies within two months of their submission and their implementation may not exceed three months from the date of the finding of the non-compliance or the assessment of the circumstances envisaged. in Article 11.3.

2. The economic and financial plan and the balance plan of the central administration will be drawn up by the government, on the proposal of the Minister of Finance and Public Administration, and will be forwarded to the General Cortes for approval, following the the procedure laid down in Article 15.6 of this Law.

3. The economic and financial plans and the rebalancing plans drawn up by the Autonomous Communities will be forwarded to the Fiscal and Financial Policy Council, which will verify the suitability of the measures included and the adequacy of their forecasts to the objectives that they would have set. For the purpose of assessing this suitability, the use of regulatory capacity in tax matters shall be taken into account.

If the Fiscal and Financial Policy Council considers that the measures contained in the plan presented do not guarantee the correction of the imbalance situation, it will require the Autonomous Community to submit a new plan.

If the Autonomous Community does not present the new plan within the required time limit or the Council considers that the measures contained therein are not sufficient to achieve the objectives, the coercive measures provided for in the Article 25.

4. The economic and financial plans drawn up by the Local Corporations must be approved by the Corporation's plenary session. The corresponding to the corporations included in the subjective scope defined in Articles 111 and 135 of the Recast Text of the Law Regulatory of the Local Haciendas will be referred to the Ministry of Finance and Public Administrations for their final approval and follow-up, except in the case that the Autonomous Community in whose territory the Local Corporation is located has the jurisdiction of financial protection over local authorities in its Statute of Autonomy.

In the latter case, the plan will be sent to the corresponding Autonomous Community, which will be responsible for its approval and follow-up. The Autonomous Community shall send information to the Ministry of Finance and Public Administrations of such plans and the results of the monitoring carried out on them.

The economic and financial plans will be submitted for knowledge to the National Commission of Local Administration. These plans will be given the same publicity as the one established by the laws for the entity's Budgets.

5. The Ministry of Finance and Public Administrations will give publicity to the economic and financial plans, the rebalancing plans and the effective adoption of the measures approved with a follow-up to the impact effectively observed of the same.

Article 24. Reports on the monitoring of economic and financial plans and rebalancing plans.

1. The Ministry of Finance and Public Administration will, on a quarterly basis, draw up a follow-up report on the implementation of the measures contained in the economic and financial plans and the rebalancing plans in force, for which the required information.

2. The Minister of Finance and Public Administrations shall forward this report to the Fiscal and Financial Policy Council of the Autonomous Communities and to the National Commission for Local Administration, in their respective areas of competence, for the purposes of knowledge on the monitoring of such plans.

3. In the event that a deviation in the implementation of the measures is verified in the monitoring reports, the Minister of Finance and Public Administrations will require the Responsible Administration to justify such a deviation, measures or, where appropriate, include new measures to ensure that the objective of stability is met.

If in the report of the quarter following the one in which the requirement has been made, the Ministry of Finance and Public Administration verifies that the failure to comply with the objective of stability persists, the coercive measures in Article 25.

4. In the Local Corporations the monitoring report shall be carried out semi-annually, in relation to the entities included in the subjective scope of Articles 111 and 135 of the recast text of the Local Government Law Regulatory Law, by the Ministry of Finance and Public Administrations, or if any, by the Autonomous Community exercising financial protection.

In case the report verifies that the measures included in the plan have not been complied with and this will lead to a failure to comply with the stability objective, the coercive measures provided for in Article 25 shall apply.

5. The reports referred to in this Article shall be published for general knowledge.

Section 3. Coercive Measures

Article 25. Coercive measures.

1. In the event of a lack of presentation, failure to approve or failure to comply with the economic-financial plan or the rebalancing plan, the responsible Public Administration shall:

(a) Approve within 15 days of non-compliance with the non-availability of credits to ensure compliance with the established objective. In addition, where necessary to comply with the commitments on fiscal consolidation with the European Union, and in line with Article 19 of the Organic Law 8/1980 of 22 September of the Financing of the Autonomous Communities, the (

) the laws of the Member States of the Member States of the European Communities and of the Member States of the European Communities;

b) Constituir a deposit with interest in the Banco de España equivalent to 0.2 percent of its nominal gross domestic product. The deposit will be cancelled at the time the measures are implemented to ensure that the objectives are met.

If within 3 months of the deposit of the deposit the plan has not been submitted or approved, or the measures have not been applied, the deposit shall not accrue interest. If a new deadline of 3 months has elapsed, the default may be agreed that the deposit will become a penalty payment.

2. If the measures provided for in paragraph (a) of the preceding number are not adapted or if they prove insufficient, the Government may agree to the dispatch, under the direction of the Ministry of Finance and Public Administration, of a experts to assess the economic and budgetary situation of the administration concerned. This commission may request, and the relevant administration shall be required to provide, any data, information or antecedents in respect of items of revenue or expenditure. The Commission will have to present a proposal for measures and their conclusions will be made public within a week. The proposed measures will be enforced for the non-compliant administration.

No credit operation may be authorized, nor shall the corresponding administration have access to the financing mechanisms provided for in this Law until such measures have been implemented.

Article 26. Enforced compliance measures.

1. Where an Autonomous Community does not adopt the non-availability agreement provided for in Article 25 (1) (a), it does not constitute the compulsory deposit provided for in Article 25 (1) (b) or does not implement the proposed measures the committee of experts referred to in Article 25.2, the Government, in accordance with the provisions of Article 155 of the Spanish Constitution, shall require the President of the Autonomous Community to carry out, within the period specified in the effect, the adoption of an agreement of non-availability, the constitution of the compulsory deposit established in Article 25.1.b) or the implementation of the measures proposed by the committee of experts.

If the request is not met, the government, with the approval of the Senate by an absolute majority, will take the necessary measures to force the Autonomous Community to enforce it. For the implementation of the measures the Government may instruct all the authorities of the Autonomous Community.

2. Where a Local Corporation does not adopt the non-availability of credits agreement or does not constitute the deposit provided for in Article 25.1.b) or the measures proposed by the committee of experts referred to in Article 25.2, the Government, or in its case the Autonomous Community which has attributed the financial protection, shall require the President of the Local Corporation to adopt, within the period indicated to the effect, the adoption of an agreement of non-availability, the establishment of the compulsory deposit provided for in Article 25.1.b), or the implementation of the proposed measures by the committee of experts. In the event of failure to comply with the requirement, the Government, or in its case the Autonomous Community which has the financial protection granted, shall take the necessary measures to compel the Local Corporation to comply with the measures contained in the the requirement.

In the event that the Autonomous Community that has attributed the financial protection does not adopt the measures referred to in this paragraph, the Government shall require its compliance with the procedure referred to in paragraph 1.

3. The persistence in non-compliance with any of the obligations referred to in the previous paragraph, where it is a breach of the objective of budgetary stability, of the objective of public debt or of the expenditure rule, may be regarded as seriously damaging to the general interest, and may be wound up by the dissolution of the organs of the local defaulting Corporation, in accordance with the provisions of Article 61 of Law 7/1985, of 2 April, Regulatory of the Local Regime Bases.

CHAPTER V

Transparency

Article 27. Implementation of the principle of transparency.

1. The budgets of each public administration shall be accompanied by the necessary information to relate the balance resulting from the revenue and expenditure of the budget with the capacity or the need for financing calculated in accordance with the rules of the system European National and Regional Accounts.

2. Before 1 October each year, the Autonomous Communities and Local Corporations shall send to the Ministry of Finance and Public Administration information on the main lines of their budgets for the purposes of compliance with the requirements of European legislation.

3. The Ministry of Finance and Public Administrations will be able to obtain from the Autonomous Communities and the Local Corporations the necessary information to guarantee the fulfillment of the provisions of this Law, as well as to attend to any other a requirement for information required by Community legislation.

The information provided shall contain at least the following documents according to the period considered:

(a) Information on initial budget projects or initial financial statements, indicating the main lines to be provided for in these documents.

b) General budget or in its case initial financial statements, and annual accounts of the Autonomous Communities and Local Corporations.

c) Quarterly revenue and expenditure, or in its case balance and income statement, of the Local Corporations.

d) Monthly income and expenses of Autonomous Communities.

e) Non-periodic, details of all entities dependent on the Autonomous Communities and Local Corporations included in the scope of the Law.

f) Any other information required to calculate budget execution in terms of national accounting.

4. The implementation, the procedure and the deadline for the referral of the information to be provided by Autonomous Communities and Local Corporations, as well as the documentation that is the object of publication for general knowledge, will be the object of development by Order of the Minister of Finance and Public Administrations, prior to the report of the Fiscal and Financial Policy Council of the Autonomous Communities and the National Commission of Local Administration, in their respective fields.

5. In order to comply with the principle of transparency and the disclosure obligations arising from the provisions of the Law, the Ministry of Finance and Public Administrations may publish economic and financial information of the Public administrations with the scope, methodology and periodicity to be determined in accordance with national agreements and standards and Community provisions.

6. Failure to comply with the obligations to supply information and transparency arising from the provisions of this law may lead to the imposition of the measures provided for in Article 20.

Article 28. Central information.

1. The Ministry of Finance and Public Administrations will maintain a public information center that provides information on the economic and financial activity of the various Public Administrations.

2. For this purpose, banks, savings banks and other financial institutions, as well as the various public administrations, shall transmit the necessary data in a manner that is determined in a regulatory manner.

3. The Banco de España will collaborate with the Ministry of Finance and Public Administrations by providing the information it receives related to the credit operations of the Autonomous Communities and Local Corporations. Regardless of the above, the Ministry of Finance and Public Administrations may require the Banco de España to obtain other specific data relating to the indebtedness of the Autonomous Communities and Local Corporations in the terms to be regulated.

4. The information at the central level referred to in this Article shall be, in the fields in which they are affected, at the disposal of the Fiscal and Financial Policy Council of the Autonomous Communities and the National Commission of Local Administration.

5. By Order of the Minister of Finance and Public Administrations, prior to the report of the Fiscal and Financial Policy Council of the Autonomous Communities regarding the information that will affect them, the data and documents of the Autonomous Communities will be determined the information centre, the time limits and procedures for referral, including telematics, as well as information that is the subject of publication for general knowledge, and the time limits and the way in which they are to be published.

CHAPTER VI

Budget Management

Article 29. Medium-term budgetary framework.

1. Public administrations will draw up a medium-term budgetary framework in which the preparation of their annual budgets will be set up and through which budgetary programming will be ensured in line with the objectives of stability. budget and public debt.

2. The medium-term budgetary frameworks shall cover a minimum period of three years and contain, inter alia:

(a) The objectives of budgetary stability and public debt of the respective Public Administrations.

(b) The projections of the main items of revenue and expenditure taking into account both their trend trend, i.e. based on policies not subject to change, such as the impact of the measures envisaged for the period considered.

c) The main assumptions on which these revenue and expense projections are based.

3. The budgetary frameworks shall serve as a basis for the preparation of the Stability Programme.

Article 30. Non-financial expense limit.

1. The State, the Autonomous Communities and the Local Corporations shall, in their respective areas, approve a ceiling of non-financial expenditure, consistent with the objective of budgetary stability and the expenditure rule, which shall mark the ceiling of allocation of resources from their budgets.

The non-financial spending limit will exclude transfers linked to the financing systems of Autonomous Communities and Local Corporations.

2. Before 1 August of each year, the Ministry of Finance and Public Administrations will report to the Fiscal and Financial Policy Council on the non-financial spending limit of the State Budget.

3. Before 1 August of each year the Autonomous Communities shall forward to the Fiscal and Financial Policy Council information on the limit of non-financial expenditure which each of them has approved.

Article 31. Contingency fund.

The State, the Autonomous Communities and the Local Corporations included in the subjective scope of Articles 111 and 135 of the recast text of the Local Government Law Regulatory Law will include in their budgets an endowment differentiated budget appropriations, which shall be allocated, where appropriate, to meet non-discretionary and non-discretionary needs in the initially approved budget, which may be submitted during the financial year.

The amount and conditions of application of this envelope shall be determined by each Public Administration within the scope of their respective powers.

Article 32. Destination of the budget surplus.

In the event that the budgetary settlement is in surplus, this will be used, in the case of the State, Autonomous Communities, and Local Corporations, to reduce net borrowing. In the case of Social Security, the surplus shall be applied as a priority to the Reserve Fund in order to meet the future needs of the system.

Additional disposition first. Additional funding mechanisms for the Autonomous Communities and Local Corporations.

1. The Autonomous Communities and Local Corporations that request the State access to extraordinary liquidity support measures or have requested it during 2012, will be obliged to agree with the Ministry of Finance and Public Administrations. an adjustment plan to ensure that the objectives of budgetary stability and public debt are met.

2. Access to these mechanisms shall be preceded by the acceptance by the Autonomous Community or the Local Corporation of particular conditions for the monitoring and reporting of information, as well as for the adoption of extraordinary adjustment measures, in their case, in order to achieve the objectives of budgetary stability, public debt limits and payment obligations to suppliers included in the Law of 29 December 2004 laying down measures to combat late payment in the business operations.

3. The adjustment plan shall be public and shall include a precise timetable for the approval, implementation and monitoring of the agreed measures. Compliance with the established timetable shall determine the disbursement by tranches of the financial support established.

4. During the duration of the adjustment plan, the responsible administration shall forward to the Ministry of Finance and General Administration for general knowledge, information on a quarterly basis, on the following extremes:

a) Public Avales received and credit lines contracted by identifying the entity, total available credit and the willing credit.

b) Commercial debt contracted by its seniority and maturity. Information on contracts entered into with credit institutions to facilitate payment to suppliers shall also be included.

c) Derivative operations.

d) Any other contingent liabilities.

5. Failure to refer, unfavourable assessment or failure to comply with the adjustment plan by an Autonomous Community or Local Corporation shall result in the enforcement of the coercive measures of Articles 25 and 26 provided for in the non-compliance with the Financial Economic Plan.

6. The Autonomous Communities on a quarterly basis and the annual Local Corporations shall submit to the Ministry of Finance and Public Administration a report of the financial controller on the implementation of the adjustment plans.

In the case of the Local Entities included in the subjective scope defined in Articles 111 and 135 of the recast of the Local Government Law Regulatory Law, the previous report should be presented on a regular basis. quarterly.

The Ministry of Finance and Public Administration will be competent to follow up the adjustment plans and report the outcome of this assessment to the Ministry of Economy and Competitiveness. In order to ensure the reimbursement of the amounts resulting from the concerted borrowing operations, depending on the risk arising from the monitoring reports of the adjustment plans, they may agree to submit them to the control actions by the General Intervention of the State Administration, with the content and scope that it determines. In order to carry out the monitoring activities, the General Intervention of the State Administration will be able to obtain the collaboration of other public bodies and, in the case of control actions in Autonomous Communities, to conclude agreements with their General Interventions.

In the case of control actions in Local Corporations, the General Intervention of the State Administration, will be able to count on the collaboration of private audit firms, which will have to conform to the norms and instructions to determine. The funding needed for these actions will be carried out from the same funds used to provide the extraordinary liquidity support measures.

Additional provision second. Liability for non-compliance with Community law rules.

1. Public Administrations and any other public sector entities which, in the exercise of their powers, failed to fulfil obligations arising from the rules of European Union law, giving rise to the Kingdom of Spain being (a) the European institutions shall, in the part that is attributable to them, assume the responsibilities arising from such non-compliance, in accordance with the provisions of this provision and those of a regulatory nature which, in development and execution of the same, be dictated.

2. The Council of Ministers, after hearing from the authorities or entities concerned, shall be the competent body to declare liability for such failure and to agree, where appropriate, on the compensation or retention of such debt with the amounts to be transferred by the State to the Administration or entity responsible for any concept, budget and non-budget. Such a resolution shall take into account the facts and foundations contained in the resolution of the European institutions and shall be taken into account in order to declare the responsibility. This agreement will be published in the "Official State Gazette".

3. The Government is hereby enabled to develop regulations as laid down in this provision, regulating the specialities which are applicable to the various public administrations and entities referred to in paragraph 1 of this Article. disposition.

Additional provision third. Constitutionality control.

1. Under the terms of the Organic Law 2/1979 of 3 October, the Constitutional Court may challenge before the Constitutional Court both the laws, regulations or acts with the law of the Autonomous Communities and the normative provisions without force of law and resolutions emanating from any organ of the Autonomous Communities that violate the principles laid down in Article 135 of the Constitution and developed in this Law.

2. In the event that, pursuant to Article 161.2 of the Constitution, the impeachment of a Budget Law produces the suspension of its validity, the budgets of the previous financial year shall be automatically considered to be carried over. until the approval of the budgets of the following year to the contested decision, until the adoption of a law repealing, amending or replacing the contested provisions or, where appropriate, until the lifting of the suspension of the contested law.

First transient disposition. Transitional period.

1. In 2020, the limits set out in Articles 11 and 13 of this Law must be met, for which:

(a) The public debt ratio on GDP for each Administration will be reduced to the necessary pace on average annually to reach, in any case, the limit set in Article 13 of this Law. The path of reducing the volume of debt must also meet the following requirements:

1. The variation of the non-financial jobs of each Administration will not be able to exceed the real growth rate of the Gross Domestic Product of the Spanish economy.

2. From the moment the national economy reaches a real growth rate of at least 2 percent a year or generates net employment with a growth of at least 2 percent a year, the government debt ratio is reduce annually by at least 2 percentage points of the national gross domestic product.

However, provided that the maximum debt value fixed by the European Union is not exceeded at that date, if any Administration exceeds the debt limit provided for in Article 13 having met the objective of structural balance, the deviation between the debt ratio and its limit should be reduced annually, without the total computation of the adjustment period being able to exceed that provided for in the European legislation to be counted since the entry into force of this Law.

b] The structural deficit of the general government as a whole should be reduced by at least 0.8 percent of the national gross domestic product on average annually. This reduction shall be distributed between the State and the Autonomous Communities on the basis of the percentages of structural deficits which they had recorded on 1 January 2012. In the case of an Excessive Deficit Procedure, the reduction of the deficit shall be in line with the requirements of the excessive deficit procedure.

2. These limits shall not be applicable where any of the circumstances and in the terms provided for in Articles 11.3 and 13.3 of this Law occur.

3. The structural deficit and public debt limits of paragraph 1 above shall have the same effects and consequences as the law provides for the limits referred to in Articles 11 and 13, in particular with regard to preventive and corrective to Chapter IV.

4. In 2015 and 2018, the public debt reduction and structural deficit paths will be reviewed, in order to reach the limits provided for in Articles 11 and 13 of this Law in 2020, in order to update them according to the economic and financial situation.

Second transient disposition. Development of the methodology to calculate the trend forecasts of revenue and expenditure under the assumption that no changes in policy and growth reference rate occur.

Within 15 days of the adoption of this Law, the Ministry of Economy and Competitiveness will develop the application of the proposed methodology, in Article 21 (b) of the (b) the trend rate and in Article 12 on the growth reference rate.

Transitional provision third. Debt authorizations.

Until 2020, exceptionally, if, as a result of extraordinary economic circumstances, it is necessary to ensure the coverage of fundamental public services, credit operations may be arranged by (a) a period of more than one year and not more than 10 years, without any application of the restrictions provided for in Article 14 (2) of the Organic Law 8/1980 of 22 September 2000 on the financing of the Autonomous Communities. Operations which are designed under this derogation shall in any case be authorised by the State, who shall appreciate if the circumstances provided for in this provision are given.

Transitional disposition fourth. Exclusion from the scope of Article 8 (2) of the Act.

The extraordinary financing mechanisms that can be provided by the State during the financial year 2012 in order for the Autonomous Communities and the Local Corporations to meet the outstanding obligations with their suppliers prior to 1 January 2012, they shall be excluded from the scope of Article 8 (2) of this Act.

On an exclusive basis for the year 2012, proposals for budgetary stability and public debt objectives for the financial years 2013, 2014 and 2015, as provided for in Article 15.1, shall be forwarded to the Fiscal Policy Board and Financial of the Autonomous Communities and the National Commission of Local Administration before 31 May 2012.

Single repeal provision. Repeal of the Stability Act.

1. The Organic Law 5/2001 of 13 December, supplementing the General Law on Budgetary Stability, as well as the Recast Text of the General Law on Budgetary Stability, adopted by Royal Decree-Law 2/2007 of 28 December, is repealed. December.

2. The provisions of this Organic Law are repealed as many provisions are repealed.

Final disposition first. Competence title.

This Organic Law is approved under the development of Article 135 of the Constitution.

Final disposition second. Normative development of the Law.

1. The Council of Ministers is empowered in the field of its powers to dictate how many regulatory provisions are necessary for the implementation of this Law, and to agree on the measures necessary to ensure the effective implementation of this Law. implementation of the provisions of this Law.

2. To make compliance with the principle of transparency effective, by order of the Minister of Finance and Public Administrations, prior to the report of the Fiscal and Financial Policy Council of the Autonomous Communities and the National Commission of The Local Administration shall determine the data and documents which are the subject of periodic publication for general knowledge, the time limits for publication, and the manner in which they are to be published.

3. The rules for drawing up the General Budget of the State as well as the multiannual budgetary scenarios shall be adopted by order of the Minister for Finance and Public Administrations.

4. The statutory provisions laid down by the General Administration of the State in which this Law is developed, which are of a basic nature, shall be expressly stated.

Final disposition third. Forales.

1. Under its foral regime, the application to the Community of Navarra of the provisions of this Law will be carried out, as established in article 64 of the Organic Law of Reintegration and Improvement of the Foral Regime of Navarre, according to to the provisions of the Economic Convention between the State and the Community of Navarre.

2. Under its foral regime, the application to the Autonomous Community of the Basque Country of the provisions of this Law shall be without prejudice to the provisions of the Law of the Economic Concert.

Final disposition fourth. Amendment of Organic Law 8/1980, of 22 September, of Financing of the Autonomous Communities.

Organic Law 8/1980 of 22 September of Financing of the Autonomous Communities is amended as follows:

One. Article 11 (f) is worded as follows:

"(f) Special Manufacturing Taxes, in part with the maximum limit of 58 percent of each, except for the Electricity Tax and the Hydrocarbon Tax."

Two. Article 11 (j) is worded as follows:

"(j) The hydrocarbon tax, in part with the maximum limit of 58 percent for the general state type and in its entirety for the special state type and for the autonomous type."

Three. Article 12 (1) is worded as follows:

" One. The Autonomous Communities will be able to establish surcharges on the taxes of the State susceptible to cession, except in the Tax on Hydrocarbons. In the rest of Excise Excise and Value Added Tax, only surcharges may be laid down where they have regulatory powers in respect of charge rates. "

Four. Point (g) of paragraph 2 of Article 19 (2) is worded as follows:

"g) In the hydrocarbon tax, the regulation of the autonomous tax rate."

Five. An additional seventh provision is added to the Organic Law 8/1980, of 22 September, of Financing of the Autonomous Communities, with the following wording:

" Additional provision seventh. Integration of the Tax on Retail Sales of Certain Hydrocarbons in the Tax on Hydrocarbons.

As a consequence of the integration of the Tax on the Retail Sales of Certain Hydrocarbons in the Tax on Hydrocarbons, according to the Agreement of the Council of Fiscal and Financial Policy 3/2012, of January 17, the The state of the tax is replaced by the special state rate of the tax on mineral oils and the autonomous section of the tax on the retail sales of certain hydrocarbons is replaced by the autonomous rate of the Tax on Hydrocarbons.

All regulatory references to the Retail Sales Tax of Certain Hydrocarbons shall be construed as being made to the special state type and to the autonomic rate of the Hydrocarbon Tax. "

Six. An additional eighth provision is added in the Organic Law 8/1980 of 22 September of Financing of the Autonomous Communities with the following text:

" Additional disposal octave. Deduction or withholding of resources from the system of financing of the Autonomous Communities of the common regime and cities with Autonomy Statute.

1. The State may deduct or withhold from the amounts satisfied by all the resources of the system of financing of the Autonomous Communities of the common system and cities with Statute of Autonomy, the amounts necessary to make the guarantees agreed in the framework of the credit operations which are designed by the Autonomous Communities and cities with autonomy status with the Institute of Official Credit or in application of the additional funding mechanisms envisaged In the Organic Law on Budgetary Stability and Financial Sustainability, as long as the State-approved financial mechanism provides for this.

In the case above the maximum amount deducted or withheld monthly may not exceed 25 percent of the liquid satisfied by the delivery to account or liquidation in favor of the Autonomous Community or City with Statute of Autonomy.

2. The liquid debts, which are due and payable to the public finances of the State by the Autonomous Communities as well as by the public law entities of which they are dependent, by reason of the taxes the application of which corresponds to the State and on the basis of social security contributions, they may also be the subject of deduction or retention on the amounts satisfied by all the resources of the financing system, in accordance with the procedure currently provided for in the provision Additional first of Law 53/2002 of 30 December 2002, of tax, administrative measures and from the social order, or in the state rule with the rule of law that regulates it. "

Final disposition fifth. Regime of the Cities with Statute of Autonomy of Ceuta and Melilla.

The cities with the Autonomy Statute of Ceuta and Melilla will be governed in the area of budgetary stability by the provisions contained in this Organic Law that result from application to the Local Corporations, without (a) to the detriment of the specialities arising out of their status as members of the Council for Fiscal and Financial Policy of the Autonomous Communities, and for the purposes of Article 13.5 of the present rule to be considered as the the debt regime established for them in their respective Statutes of Autonomy, The recast text of the Local Government Law Regulatory Law, approved by Royal Legislative Decree of March 5, is being replaced.

Final disposition sixth.

The deposit referred to in Article 25 (1) in the case of local entities shall be 2,8% of the non-financial income of local entities.

Final disposition seventh. Entry into force.

This organic law shall enter into force on the day following that of its publication in the "Official State Gazette".

However, the limits provided for in Articles 11 and 13 of this Act shall enter into force on 1 January 2020.

The amendment of the Organic Law 8/1980 of 22 September of Financing of the Autonomous Communities, provided for in paragraphs One to Five of the fourth final provision, inclusive, will enter into force on 1 January 2013.

The economic and financial plans presented during the financial year 2012, as well as the objectives for 2012 set out in accordance with the previous Law, will be governed by their monitoring and implementation. the provisions contained in this Law.

Therefore,

I command all Spaniards, individuals and authorities, to keep and keep this organic law.

Madrid, April 27, 2012.

JOHN CARLOS R.

The President of the Government,

MARIANO RAJOY BREY