He level of public spending in Spain to help the economic sectors and companies most affected by the economic crisis derived from the pandemic is substantially lower than that of the main European countries. The Catalan employers Work Promotion has resorted to the latest data published by the International Monetary Fund (IMF) to criticize the attitude of the administrations, mainly the central government, in this regard. And request the administrations to use their debt capacity to allocate a fund of direct aid to companies of 50,000 million.
The IMF data specify that in Spain during the last four months of 2020 aid in relation to GDP fluctuated only between 3% in September and 3.7% in December, that is, a level significantly lower than that of reference countries in Europe such as Germany (from 7.7% to 9.8%), France (from 4.6% to 6.9%) or Italy (from 4.5% 6.2%), despite the fact that, in the case of the latter country, Italy, also has a high level of deficit and indebtedness.
According to a note from the Catalan employers’ association released this Saturday, it is about resources to the economic sectors and companies affected, formalized via tax exemptions or discretionary public spending and that have provided liquidity to companies during the first and second waves of the pandemic to avoid closures and facilitate the maintenance of employment until the activity recovers. “It must also be borne in mind that the economic impact of the pandemic in these countries is lower in Spain, given that our economy is much more vulnerable due to dependencies on the tourism and services sector, compared to countries with a more powerful industrial sector”, precise note.
Aid with guarantees
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Foment considers that through these IMF data, it is possible to conclude that except for Italy, the aid through guarantees has not been used since September. The increase in public spending on financial aid has increased 2.1 points in Germany, 2.3 in France and 1.7 in Italy. In Spain the increase in spending in affected sectors is a third of those of these countries.
Based on these figures, Foment asks public administrations, “especially the central government”, to make use of their debt and debt capacity. implement a program of direct funds to the economy, which is valued around the 50,000 million euros. The employers remember that its president, Josep Sánchez Llibre, has insisted for months on this claim given the serious economic situation of many companies and sectors affected by the restrictions on social life that affect mobility and consumption.