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Spanish PM Rajoy has been making promises.....>

SPAIN
SPAIN: Spanish PM Rajoy has been making promises on pensions. He says that as
long as he is PM "pensions are not going to be frozen". And added that "they
will always go up as much as possible". This is very important from the Spanish
budget perspective because according Rajoy's speech E139bln was spent on
pensions in 2017, which is "more than 40% of the budget managed by the
Government". Indeed, it is more than double the size of the second largest
budget item.
- Rajoy is talking of increasing pensions at a rate of 3.0%pa.
- Spanish debt markets are underperforming other EGBs this morning although
there is E4.5-5.5bln of supply on Thursday.

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