The ratings on the Kingdom of Spain reflect its robust fiscal consolidation in recent years, which has been supported by tight expenditure control, coupled with declining interest payments, and strong revenues. The general government has for the most part recorded small deficits in recent years. Following buoyant revenue growth at the central government level and increasing social security surpluses, the general government is expected to post modest surpluses in the medium term. Moreover, the debt-to-GDP ratio is expected to continue on a downward trend, culminating in a decline of about 20 percentage points, between 2000 and 2008, to below 40% of GDP. Reforms to labor and product markets have increased the resilience of the Spanish economy in the past few
