Spain’s top politicians have reached an agreement on including limits on the country’s public deficit and debt in its constitution.
However the constitutional amendment agreed by the country’s main parties will not come into effect until two thousand and twenty and will not include a specific cap on the deficit.
Economists said it was unlikely to persuade markets that Madrid can manage its finances.
“In our opinion, the agreement according to the terms they’ve laid out doesn’t really offer credibility … on the commitment to containing the deficit,” Spanish bank Banesto said in a note.
“Not so much because of the lack of a concrete numbers, but because they leave the door open to too many exceptions… as well as the possibility of changes in the future.”
The deal follows calls by Germany and France for Spain and other states at the sharp end of the euro zone debt crisis to set binding limits on their deficits to regain the trust of investors.
The euro rose on Friday’s announcement but Spanish debt prices were little changed.