The Spanish Treasury plans to finance 60 billion in 2025 to address the DANA crisis.

The announcement by the Minister of Economy, Trade, and Business, Carlos Cuerpo, at the press conference following the Council of Ministers, has made it clear that the Spanish Treasury is preparing for a 2025 marked by an increase in its financing needs, which will amount to 60 billion euros. This decision responds to the economic and social implications arising from the DANA (Isolated Depression at High Levels), which has affected various regions of the country, and demonstrates the government's commitment to ensuring an effective response for the reconstruction of the affected areas. Cuerpo emphasized that the Treasury's financing strategy is based on two pillars: prudence and flexibility. These characteristics are essential for addressing the various financial needs that may arise during the year, in an international context that remains uncertain. With this increase, the aim is to maintain a sufficient margin to address any extraordinary expenses that may be necessary in response to the crisis caused by the DANA. In a deeper analysis, the minister highlighted that the country's economic situation is robust. The combination of sustained growth and careful economic policy has allowed Spain to maintain solid access to debt markets. This translates into a reduction in interest costs and the ability to cushion the impact of rising rates, thereby reinforcing the confidence of both national and international investors in the Spanish economy. According to the strategy presented, the Treasury's gross issuance is expected to reach 278.448 billion euros, representing an increase of 7.4% compared to the previous year. This increase is mainly due to a higher volume of maturities and a slight rise in net issuances. Most of the new issuances will be carried out through medium- and long-term instruments, with a total of 55 billion euros allocated for this purpose, which will help maintain the average life of the debt portfolio. The prudent management of debt is one of the key points highlighted by the ministry, as the average life of the outstanding debt is expected to remain around eight years. This strategy has allowed for a more effective management of the impact of the recent rise in interest rates. In fact, the average cost of outstanding debt has increased by only 57 basis points since its historic low in 2021, in contrast to a total increase of 350 basis points in official rates during the same period. The Treasury plans to conduct up to 48 regular auctions of treasury bills, bonds, and obligations throughout the year, in addition to resorting to syndicated bids to further diversify its sources of financing. A significant part of the strategy also includes the issuance of green bonds, thus reinforcing the government's commitment to sustainable finance and the development of projects related to the ecological transition. The ongoing support for green bonds is reaffirmed by the intention to reopen the green bond issued in 2021, with the aim of reaching a volume similar to that of other references on the public debt curve. This approach not only aims for sustainability but also seeks to attract investors interested in financing projects that have a positive impact on the environment. Finally, the Ministry of Economy reiterated that, as in previous years, disbursements from the Recovery Plan are expected in 2025, which will be complemented for the first time with significant loans. These resources will be conditioned on the achievement of milestones and objectives agreed upon within the framework of the Plan, adding another layer of accountability and transparency in the use of public funds. Thus, the Spanish government faces a 2025 full of challenges, but also opportunities, where prudence and flexibility become key tools for managing the financing necessary for recovery and boosting the economy, in a context that continues to demand attention and effective responses to the challenges that arise.