Spain to insert budgetary discipline amendment in constitution

Spain’s two main parties have reached an agreement to amend the constitution to enshrine the principle of budgetary discipline.

The aim is to give assurances that Spain has and will retain a hand on its debt-heavy public finances and not follow Greece, Ireland and Portugal in needing a bailout.

A spokeswoman for the ruling Socialists said today that they and the centre-right Popular Party cut the deal in the early hours as part of a frantic negotiating and legislative process which will presumably see the amendment voted on and passed on September 2.

The amendment will not mention budgetary numbers. Instead, the deal calls for parties to approve a separate law under which, starting in 2020, Spain’s deficit cannot surpass 0.4% of GDP.