The European Commission and the European Investment Bank (EIB) they have bought Andorran public debt for the first time This is what he revealed yesterday Minister of Finance, Ramon Lladósduring the presentation of draft budget for 2027 in front of legislative finance committeein which he highlighted the growing confidence of international investors in theeconomy of the Principality. As he explained, the two community institutions have included Andorran debt in their portfolios, a fact that he described as surprising and that he attributed to the solidity of the public finances
“For the first time, the EIB has bought debt from Andorra, which is surprising”
Lladós remarked that the BEI tends to acquire debt from the member states of the European Union and he considered it particularly relevant that he has opted for the principality “He must have found it better than much of the debt of countries in the European Union“, he pointed out. In the case of the European Commissionexplained that the treasury department had also decided to invest in Andorran debt over other community alternatives. The minister assured that the two operations had positively surprised him Government
“These are the strictest examiners. The people who vote with their pockets”
Added to these acquisitions is the interest of investors from the Nordic countries, mainly pension funds and asset managers. Lladós he defended that the trust of the markets is an indicator of the country’s economic situationas investors compare Andorran emissions with those of other states before deciding where to allocate resources. “These are the strictest examiners you can have“, he affirmed.
The Head of Finance linked this confidence to the reduction of the risk premium, which has passed from 115 basic points from 2021 to the current 31. He also emphasized that the debt, that the 2021 represented the 46.3% of GDPwill be located around the 28% at the end of this financial year. As he defended, this evolution has allowed him to continue investing without increasing the debt.
The explanations occurred during the presentation of some accounts for 2027 which foresee an increase in the11% of the expenditure i they keep housing, health and education among the priorities. The Government calculate to close the 2026 with a surplus of ten million euros and ensures that the project complies with the limitations established by the golden rule.
The reading of the minister contrasted with the discrepancies expressed by the councilors of the opposition. The social democrat Pere Baró questioned that economic growth translates into a effective improvement of living conditionsespecially in the face of the increase in public aid, labeling the welfare budget. He also criticized the increased tax pressure and considered that the measures promoted by the Government have more of a collection effect than a deterrent. Lladós replied that the increases mainly come from figures linked to foreign investment, real estate capital gains and passive residents. On the other hand, the candidate a head of the Concordia Government, Cerni Escaléfocused on the nominal growth of the debt and the stagnation of the Real GDP per capita and by busy according to Lladósthis last question provokes several readings. On the one hand, that many of the jobs that are created are not of high productivity, but, on the other hand, that the level of employment is very high.
