Assumes war will slow economic growth, but hopes funds will prevent “recovery from going off the rails”
The Government ask Brussels in the coming weeks the next disbursement associated with the Recovery Plan, of 12,000 million euroswith which he hopes to counteract the economic slowdown that the Spanish economy will suffer due to the war unleashed in Ukraine.
This was announced this Friday by the Secretary of State for the Economy, Gonzalo Garca Andrswho trusts that European funds will serve to prevent “the economy from going off the rails”, as he admitted at an event organized by EY.
“In the coming weeks we are going to request the 12,000 million euros that we will request for the fulfillment of the milestones and objectives of the last quarter of 2021, among which is the labour reform. It is the largest disbursement and that is no coincidence, because it is associated with complicated reforms. Labor was very complicated to achieve, and it was much more difficult to make those changes with an agreement with the unions and company representatives,” he defended.
The Secretary of State considers that “the war puts us face to face with the urgency to move forward in the transformation of the industry, introduction of digitization and advancement in all PERTE”, which is why he considers it essential to execute the funds in order to counteract their impact.
There is no need to fear that the recovery will be derailed because it is very much fueled by the reforms and investments of the plan.
“Now we have to further unite the forces of all public and private sectors involved in the plan to do it with more determination, because we are seeing the positive effects”, he claimed.
In his opinion, “with the context in which we are and the information we have recovery will not derail, are the forecasts of the ECB and the EC. The growth for this year is very intense, the starting situation was very solid, although clearly we are going to slow down the rate of progress and growth will be lower. But there is no evidence to fear that the recovery will be derailed because it is so fueled by the plan’s reforms and investments“, he trusted.
The problem is that although Spain is receiving disbursements from Brussels, your pace of execution of the Plan is not as fast as you would like and, given the model of territorial decentralization, the government does not even know in real time how much of the funds are reaching the real economy.
The companies have repeatedly complained because the money is not reaching the productive fabric and Moncloa cannot give a figure of what amount of money has been channeled from the Administrations to the real economy.
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