The governor of the Bank of Spain, Pablo Hernández de Cos, emphasized this Friday from Binéfar (Oscar) that it is “fundamental” to rigorously implement the new fiscal rules to gain credibility, “especially in the first moments, from the spring”.
At the 11th Foro Rural Somos Litera, the economist discussed with the lawyer and former deputy Josep Antoni Duran i Lleida, promoter of the meeting, the most positive aspects of the reform of these rules approved in December by the European Union: the emphasis on the sustainability of public debt, the control of public expenditure or that the close relationship between economic growth and fiscal sustainability is taken into account.
However, he sees room for improvement. “We have not made progress in simplification, the tax rules are still very complex”, he assured. He also criticizes the absence of a European fiscal policy, which should be combined with the end of the banking union and the development of a common capital market. “If not, it will be very difficult for Europe not to end up falling behind”, he added.
With an unfavorable international context, Cos highlighted the trajectory of the Spanish economy in recent quarters in terms of growth. However, he pointed out weaknesses, such as not having recovered the dynamism of private investment or the low productivity of the economy, which is why he is betting on a process of fiscal consolidation and the promotion of structural policies that allow a dynamism higher productivity.
In addition, the governor believes that we are close to the first reduction in interest rates – “Possibly in June”, he clarified -, but he said that this will depend on three variables: the wage dynamics, “which will slow down , but it will remain robust”; productivity, and wage margins, which “can serve as a cushion” in a context of weak demand. “All this makes us think that [inflation] will continue to converge towards 2%”, he postulated.
In this forum, the Minister of Industry and Tourism, Jordi Hereu, announced that Stellantis Figueruelas has been awarded 54 million more euros from line B of the second call for the Perte VEC (electric and connected vehicle), with the which already adds up to more than 113 million euros granted through this program. For its part, the Robert Bosch plant in Aranjuez has achieved 1.2 million, and the Benteler in Burgos, around 342,000 euros.
