...Challenge To Narrow Deficit: Regional governments are in the process of presenting their 2015 draft budgets to their respective parliaments. It will be interesting to see how they plan to continue to reduce their spending, after the spectacular efforts made in 2012-2013. The fiscal target for 2015 estimates a deficit of EUR7bn, while in 2013 the regions managed to reduce their deficit to EUR18bn through their efforts to cut spending. These cuts would be necessary to be prolonged but might be difficult as regional elections are due to be held in 2015. Positive Current Balance Possible in 2015: Compliance with the fiscal target is important, but Fitch also monitors the Spanish autonomous communities ability to report a positive current balance. The sector continued to report a negative current balance in the first eight months of 2014, after four years of negative current balance. With possible extra current revenue of EUR1bn in 2015, Fitch will assess the likelihood of the autonomous communities...
