Hernández de Cos warns of the risk of transferring inflation to wages

The Governor of the Bank of Spain, Pablo Hernández de Coshas warned of the risk of transferring inflation to wages, which could lead to a “inflationary spiral” much more persistent than the current scenario. De Cos has issued his warning one day after learning about the approach of the Ministry of Finance to execute an additional salary increase of 1.5% in 2022 for officials.

The first sword of the banking supervisor has spelled out the main risks of the current inflationary crisis in the XXI Congress of the CEDE (Confederation of Managers and Executives of Spain) that is being held this Thursday in Bizkaia. De Cos has stopped to break down the composition of the inflation rate, which this Thursday fell below two digits (up to 9%) for the first time since May according to the data advanced today by the INE. To highlight that between 75% and 80% of inflation in Spain is linked to the energy component and food.

Previously, José Ignacio Goirigolzarri, Chairman of CaixaBank, has highlighted the challenge for banks to adapt their operations to each customer profile. “We must transmit the fundamental role of banking to society in a more transparent and effective way”, she pointed out, “The reputation and image of a sector are key to its survival”.

Gorigolzarri (CaixaBank): “The reputation and image of the banking sector are key to its survival”

Gregorio Villalabeitia, president of Kutxabank, has also had an impact on the issue of reputation, a field in which Spanish entities are still not perceived under the same metrics as the rest of European banking. As well as in the urgency of leveling the rules of the game for all financial operators, a framework that is now more or less inflexible depending on the type of entity, “to the detriment of banking.”

Gregorio Villalabeitia, president of Kutxabank, during his speech at the XXI CEDE Congress
Gregorio Villalabeitia, president of Kutxabank, during his speech at the XXI CEDE Congress

Both managers have drawn attention to talent management. “There is an absence of the most demanded profiles”, Villalabeitia has pointed out. While the president of the Catalan entity has influenced the challenge involved in incorporating these new profiles and their coexistence with the more traditional ones within the corporate organization chart.

In addition to inflation, the tax issue was another constant during the meeting. Local authorities, such as the general deputy of Bizkaia, Unai Rementeriaque, took advantage of the meeting to recall that the Basque Country has its own treasury, marking distances with the new taxes -sectoral (banking and energy) and against large assets-, which prepares government. They have also highlighted the “legal security” that exists in Spain, one of the reproaches that the business front repeatedly launches against the Government.

Source: LA INFORMACIÓN – Lo último by www.lainformacion.com.

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