. the improved cyclical position and the significant reduction in the risk premium and interest rates on public debt have a major direct positive effect on public finances, in contrast to the adverse pressure wielded by these variables in recent years. the adjustment in public finances undertaken by the spanish economy is three - pronged : the gradual reduction in the budget deficit in line with the targets set, the strengthening of the fiscal governance framework and the reform of the pensions system. in light of the budgetary exercise under way, compliance with the fiscal commitments acquired at the european and national level should be the cornerstone of our budgetary policy. fulfilment of these objectives will allow us to build on the gains in credibility already attained and to turn around the upward trend in the public debt / gdp ratio. both goals are prerequisites for a durable economic recovery. bis central bankers ’ speeches one of the main changes to the institutional framework of spanish fiscal policy has been the creation and start - up of the autoridad independiente de responsabilidad fiscal ( independent authority for fiscal responsibility – iafr ). the iafr will be playing a most prominent role throughout the budgetary cycle, monitoring compliance with the principle of budgetary stability in the general government sector, in accordance with the provisions of article 135 of our constitution and with european regulations. in this way spain is moving to enhance its economic governance, joining those eu countries – practically all of them – that have this type of agency. the iafr, adhering to the principles of independence, transparency and accountability, will contribute to improving control over fiscal policy and to introducing greater budgetary discipline in all tiers of general government, in line with the law on budgetary stability and financial sustainability approved in 2012. more specifically, and focusing on the budget for this year, the iafr has recently published a report on macroeconomic forecasts ( informe sobre las previsiones macroeconomicas ), endorsing the government ’ s macroeconomic projections that underpin the draft state budget and analysing the consistency of the projections made in previous years. furthermore, by 15 october, the iafr is to publish its report on the draft budget ( informe sobre el propio proyecto de presupuestos ), in which it will assess its suitability with a view to meeting the objectives of stability, debt and the rule that ties spending to economic growth. as regards the sustainability of public finances in the

to only 0. 15 %. given that the aim of new long - term injections is to stimulate bank loans to the non - financial private sector, their availability has been linked to both the stock and the flows of lending extended by banks to households and firms, although loans for house purchase have been excluded from these calculations. the non - conventional measures agreed in september also include two new asset purchase programmes, the details of which will be addressed in the next ecb governing council meetings. the eurosystem may acquire financial instruments derived from securitisations that meet various requirements. they must be simple, transparent and based on loans to households and firms in the euro area. the programme is expected to be able to contribute to reinvigorating the securitisations market, a major market that has been greatly affected by the crisis. furthermore, this month the eurosystem will set in motion a new programme to purchase mortgage - backed securities, or securities backed by other loans held by banks, i. e. in spain ’ s case, our various types of covered bonds. following the approval of this set of measures, the ecb has reiterated its commitment, unanimously backed by its governing council, to resort if necessary to further unconventional measures. developments in and outlook for the spanish economy in contrast to the weakening of the recovery in the euro area, the momentum of the spanish economy in 2014 has progressively firmed. gdp rose in the second quarter by 0. 6 %, marking four consecutive quarters of increases. the latest figures point to this trajectory continuing over the rest of the year, albeit at a more measured pace. that will allow the yearon - year rate of change in gdp to draw close to 2 % in the final quarter, a rate at around which the spanish economy may be expected to grow on average in 2015 as a whole. the growth rate of employment during the first half of the year exceeded forecasts across the board in the productive sectors, albeit more intensely so in market services. our expectation is that this pattern of job creation and of gradual reduction in the unemployment rate will continue, although perhaps somewhat more slowly. bis central bankers ’ speeches national demand is playing a key role in this phase of recovery. among the factors driving it are, first, the progressive normalisation of financial conditions brought about by the eurosystem ’ s expansionary monetary policy and the reduction in the degree of financial fragmentation in the area. favourable labour market developments are also playing a notable part in kick -