Calviño fears that the rise in the price of energy could slow down the recovery

The electricity crisis knocks on the door of the Ministry of Economy. The First Vice President and Minister of Economic Affairs and Digital Transformation, Nadia Calviño, acknowledges that it is concerned that rising energy prices and bottlenecks in global chains could put a brake on the recovery, especially in the industrial sector. This is how the first vice president has transferred it this Wednesday after the conference ‘The Spanish economy: current situation and future prospects’, which took place at the Autonomous University of Madrid.

This was expressed by the first vice president this Wednesday after giving the conference ‘The Spanish economy: current situation and future prospects’, held at the Autonomous University of Madrid. “We have realized, as a consequence of the pandemic, that globalization also means an increase in vulnerability because we depend more on each other,” he said.

Sánchez Von der Leyen

Faced with this, the economic head of the Government has defended that Spain is proposing to the European Union to strengthen its voice in the energy field and modernize the regulatory framework, since it was launched in a context different from the current one, which is also marked by The renewable energies. Although has recognized that European rhythms are not what the Government would like, sees some prospects in which proposals will be raised again to stop the rise in the price of energy at the summit of heads of State and Government that will meet again in December.

“The recovery is underway”

Despite these concerns, the Minister of Economic Affairs has indicated that the recovery can be headed, “that is already underway”, with confidence and hope after having made “good decisions” since March last year at national, European and international level. With these measures taken at that time, the destruction of more than 3 million jobs and a fall of more than 25% of GDP have been avoided. “The recovery is underway and Spain will be one of the growth engines in 2022,” he remarked.

For this, the economic head of the Government has highlighted that the evolution of the labor market is being important, which has been presenting a positive trend in these months, also maintaining in October, as has advanced. About this, Calviño has valued that the levels of affiliation to Social Security They are already in pre-pandemic values, as well as youth unemployment, and he has highlighted that the number of workers in ERTE is already below 200,000. “Everything indicates that the recovery is accelerating,” he indicated.

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Aspire for Spain to lead the debate on fiscal rules

After last week the European Commission officially relaunched the debate on the future of fiscal rules, which establish limits to the deficit and public debt and establish consolidation paths for those countries that exceed them, Calviño hopes that Spain is one of the countries that lead it. The Commission’s aim is to find “consensus” between divided community partners “in time” for 2023. It should be remembered that the Stability and Growth Pact has been suspended since the beginning of the pandemic to allow the governments of the bloc to increase public spending in response to the crisis caused by the pandemic. Budget rules will remain frozen in 2022 but it will be the last year this will happen.

The person in charge of the Ministry of Economic Affairs has defended the “commitment” of Spain with reducing the deficit and debt since 2021 “for intergenerational justice”, despite the suspension of the rules. In addition, he recalled that the 2022 budget plan foresees a “very significant” reduction in debt, to 115% of GDP. Calviño has advocated “breaking” the dynamics of recent years, with debates referring to “frugal against wasteful countries”, “big against small” or “north against south”. “I believe that it is very important that we overcome this type of debate vectors and that we base them on what unites us, “the vice president remarked.

And it is that countries such as Austria, the Netherlands, the Nordics, the Czech Republic, Slovakia and Latvia published a joint letter in early September in which they were open to changes in the Pact but opposed a more ambitious relaxation. In your opinion, current rules already have sufficient flexibilities. Germany has historically defended this same line, in favor of an iron fiscal discipline and great news is not expected in the opinion of Berlin, despite the fact that the talks between social democrats, environmentalists and liberals to form a government are still underway.

On the opposite side are countries such as Spain, France or Italy, defenders of a profound reform that modernizes the set of norms, adapt it to the new reality and to the “investment needs derived from the recovery”, in the words of the Vice President for Economic Affairs of the Government, Nadia Calviño.

Source: LA INFORMACIÓN – Lo último by

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