Politics · Spain · 2 hrs ago
Feijóo faces a market risk if an audit uncovers a larger Spanish deficit
Alberto Núñez Feijóo has promised to audit Spain’s public accounts if he becomes prime minister.
The opposition leader suspects the government may have understated the country’s deficit, after years without a national budget.
But revealing worse figures could unsettle debt markets as investors watch public finances across the euro area.
Spain’s 10-year bond now costs the Treasury more than 4% in interest, up from about 3% at the start of the year.
Spain’s fiscal watchdog estimates that in a period of market stress, annual debt-interest costs could reach €67.2 billion to €73.2 billion by 2030, compared with €58.3 billion in its base scenario.
Higher payments could leave less money for social or military spending, and any new government would face close market scrutiny of its accounts.
Alberto Núñez Feijóo has promised to audit Spain’s public accounts if he becomes prime minister.
The article says that revealing a larger-than-reported deficit could draw market scrutiny and push up Spain’s borrowing costs.
Spain’s 10-year bond yield is above 4%, compared with 3% at the start of the year, while France’s has approached 5%.
The article says Spain already faces a likely breach of European spending rules based on the government’s reported figures.
Past governments from both major parties have disclosed deficits higher than previously reported.
- Who
- Alberto Núñez Feijóo, leader of the People’s Party (PP), has pledged an audit. Spain’s government and public finances are also at issue.
- What
- Feijóo says he would audit public accounts if he takes office. The article warns that revealing a larger deficit could unsettle markets and increase borrowing costs.
- When
- Feijóo made the commitment previously and repeated it during the current pre-campaign. The article was published on 17 October 2026.
- Where
- Spain.
- Why
- Feijóo suspects there may be an undisclosed deficit. The article says revealing one could attract market attention and raise financing costs.
This story does not have two clearly opposing sides.
Spain’s public deficit was later reported at 6.79%, compared with 5.87% declared by Felipe González’s government.
José María Aznar’s incoming government disclosed what it called “invoices in the drawers.
Spain’s 10-year bond yield was 3%.
El Mundo published its report on the potential market risks of a deficit audit.
- Audit pledge
- Feijóo says he would audit public accounts if he takes office.
- Spain’s 10-year bond yield
- Above 4%, compared with 3% at the start of 2026.
- France’s 10-year bond yield
- Has approached 5%.
- Deficit for 1995
- 6.79% later reported, versus 5.87% declared.
- Potential interest costs in 2030
- €67.2 billion to €73.2 billion under a higher-tension scenario, versus €58.3 billion in the base scenario.
What people are saying
an audit of sanchismo
find out what Mr Sánchez has spent the money on during the eight years he has been at the helm of the country and why public services are worse than ever
Feijóo must lift the carpets, but carefully, because markets will be watching countries’ accounts in the euro area closely in the coming months
the deterioration in public finance prospects in several advanced economies could raise their sovereign debt yields and tighten financing conditions in Spain