“Cry out to legions of the brave”. Ronnie James Dio.
In a serious country, a government would not be allowed to approve budgets where the macro table is invalidated by the estimates of the European Commission and the INE, where revenues are exaggerated and expenses are underestimated.
In a responsible European Union, a Government shoots up to 37,000 million structural spending taking advantage of the money of its European partners and try to disguise it by plundering future citizens and pensioners.
The agreement with Brussels to receive European funds is, in short, raise taxes by 80,000 million euros and cut pensions massively to receive 70,000 million euros of European funds earmarked for an investment that is going to be wasted. A real nonsense that will impoverish the vast majority of citizens while the Government eliminates any hint of transparency in the management and granting of these funds, in which the probability of waste is extremely high and few doubt it.
Nobody serious in the European Commission can believe that the Government of Spain is going to reduce the structural deficit by triggering current spending and increasing all taxes.
Nobody serious in the European Commission can believe that the Government of Spain is going to reduce the deficit
After the economy collapsed more than anyone in the European Union in 2020 (10.8%), triggering the deficit “”to grow”, raising taxes and consuming all the support of the European Central Bank, which has bought 100% of the net debt issued by the Government of Spain, to say that a rickety rebound of 4.6% is “growth” or is a “fair recovery” is simply immoral.
The hack of the European Commission to the estimates of recovery of Spain Shame on the government. No economy has suffered a forecast hack of 25% in such a short time. Spain goes from being the economy that would recover the fastest, according to the more than optimistic forecasts of international entities – we have already warned about it here – to being the one that recovers the worst and slowest. Spain goes from being the country that was going to recover the most to the seventeenth in the European Union.
The most dangerous thing, and something that the European Commission cannot ignore, is what AIReF warns. A large part of European funds go to expenses that they want to make permanent. According to him Report on the update of the stability program 2021-2024 of AIReF, there is a very high risk that at least half of the 30 components of the Recovery, Transformation and Resilience Plan become permanent expenses.
worry that more than 21,000 million euros per year are entrenched as permanent current spending and more than 16,000 million annually become assimilated budgets.
AIReF says it clearly: “this year’s Stability Program does not meet the objective of constituting an instrument for guiding fiscal policy in the medium term”.
It is intolerable that the Government has signed in the MOU (Memorandum of Understanding) of the Brussels bailout a cut in pensions that will be between 5 and 7% in nominal terms – higher in real terms – for the vast majority of taxpayers. add a rise in taxes on labor without consideration one in a country that already has social security contributions among the highest in Europe and such high unemployment is truly outrageous.
It is not worth receiving European funds that are going to be wasted for the most part if the counterpart is to make hiring more expensive, raise taxes on families and companies, cut pensions and charge us for the use of roads.
It is not worth receiving European funds that are going to be wasted for the most part if the counterpart is to make hiring more expensive
Government policy it cannot be to trigger structural spending and always plunder the citizens. That is not managing, it is sinking the country’s options to recover and move forward.
Spain is one of the countries with more aggressive taxation for companies and workers. Instead of working on the elements that make us stay behind, the very high unemployment, the small business size and the large underground economy, the Government always goes to increase the fiscal effort of those who contribute while subsidizing low productivity and patronage.
The European Commission and the European Central Bank cannot be complicit in an extractive and confiscatory policy which, furthermore, will not achieve fiscal consolidation since it consolidates and perpetuates current spending. The Government trusts all the reduction of the deficit (not of the debt) to income that can only grow, in science fiction estimates in which Spain only collects more and more no matter what happens, as if there were no periods of crisis or consolidation.
It is sad to read economists close to the Executive wondering why we are not rebounding more and why growth expectations are being revised downwards. The constant threat to those who produce, the incessant attack on taxpayers and the uncontrolled financing of patronage spending lead Spain to a dead end.
If the European Commission approves this battery of economic barbarities and continues to look the other way with excess spending, Spain will end up as a hindrance to the European Union instead of the pillar of growth that it could be.
If the European Central Bank continues to disguise the real risk by buying 100% of the net debt issued, the Government will continue to go beyond all the limits of budgetary prudence.
There is no more anti-social policy than lead a country to ruin boosting political spending.