Nadia Calvin, Minister of Economy and third vice president of the Government, has advanced this Saturday that the Executive will make the decision to extend measures to support the solvency of companies, with the extension of the grace period and repayment of loans guaranteed by the Official Credit Institute (ICO) in the Council of Ministers next Tuesday. “We have to start looking at the solvency of companies,” he said. The measure has been agreed with the Spanish financial system and the European Commission, the minister has commented in her speech at the XXV S’Agaró Economy Meeting, held in Barcelona, which closed this Saturday.
Calviño has also advanced that the ministerial meeting will approve measures to mitigate the effects that the closure caused by the pandemic has had on the trade and hospitality of different autonomous communities, such as Catalonia. “We are working on a plan to support the Horeca sector and commerce to adapt measures and work with the autonomous communities and municipalities for the sectors most affected by the pandemic,” commented the minister.
He also recalled in his speech that credits guaranteed by the ICO have been essential to protect the liquidity of the economy and the productive fabric. There have been 876,000 operations, with a guaranteed amount of 81,787 million, which have mobilized resources worth 107.6 billion euros. “This is the guarantee program that has had the most weight in the euro area,” said Calviño. But he also pointed out that prolonging it required the support of the financial system and the European Commission. “We had to count on the Commission to give us the margin to change the framework. And then we had to take into account the prudential framework of financial institutions,” he pointed out.
Change the model the production model
The economic head of the Government has highlighted that the Executive has a plan for the future of economic recovery in the medium term supported by the European funds, which is based on the idea of changing the country’s productive model. “It is the work that we have been developing for two and a half years analyzing the reforms that must be carried out,” he said. The pandemic has accelerated this work and the budget project for 2021 – which has passed the first parliamentary process – assumes the recovery plan that the Executive is developing, he explained.
“We have the bases and the plan, and the necessary financial resources. We are facing a unique opportunity to use European funds, of 140,000 million euros in six years, to develop the driving policies that the Government has defined,” he added during his telematic intervention to close the conference organized by the Olof Palme International Foundation.
The 2021 budgets incorporate 39,000 million euros of investment, of which 27,000 million will come from the European recovery fund, Calviño has specified. “The EU’s response is up to the task. We are going to go into debt to invest in our common future and this is the only way,” he added. The answer will mean an increase in public debt that will have to be paid for by future generations, and it can be a drag if it is not invested properly. “All the measures represent an effort of solidarity and we cannot stop investing them with intergenerational justice,” he commented.
Bill for funds
During the conference he also participated in a panel of analysts Manuel de la Rocha, Director of the Department of Economic Affairs and G20 of the Office of the President The Government, who has announced with the Executive is working on the development of a decree-law to define the distribution of European recovery funds and “avoid bottlenecks and dispensable processes.” He also stressed that the implementation of these funds will be essential public-private cooperation to amplify the effect of those investments.
De la Rocha has advanced that the funds will arrive in the middle of next year, but different items have already been included in the 2021 budgets, so that “the Government intends to implement the aid as soon as the budgets come into force.” Calviño has also advanced the drafting of the decree-law.