Update Post: November 28, 2023 11:20 pm
The acting first vice president and Minister of Economic Affairs and Digital Transformation, Nadia Calviño, no longer categorically rules out that the measures approved to address the consequences of the inflationary crisis caused by the war may be extended beyond the end of the year. of Ukraine in homes and businesses, the so-called “social shield” of more than 50 billion euros deployed since the beginning of last year.
They are like the reduction in taxes on electricity and gas, which have been applied to VAT on food or free public transport. Both the European Commission and other international and national organizations (Bank of Spain or AIReF) have recommended their withdrawal or that they be extended only for the most vulnerable groups.
During the appearance after the Council of Ministers, Calviño recalled that these are measures that are updated every six months, that some last annually and that between now and the end of the year the Government, now in office, will take the “timely decisions.” The Executive has assured that the objective is for the country to continue with the path of consolidation of the CPI, taking into account the “most appropriate” measures at all times.
The ‘number two’ of the acting Government has also highlighted how the GDP is now 2% above the pre-covid level and has stated that the economic prospects for the country are “positive” for the coming months. , despite the global economic slowdown. “We are undoubtedly in an international moment marked by uncertainty, by changes that are accelerating vertiginously” and, however, the Spanish economy is demonstrating more than ever its “remarkable strength” and its “great resilience.”
Calviño recalled that the review of GDP since 2020 published last week by the National Institute of Statistics (INE) confirms that the Spanish economy has had a strong recovery since 2021 and exceeded the GDP level prior to the pandemic already in the summer of 2022. So far this year, the activity and dynamism that it had been demonstrating are maintained, he has assured, thanks to the European Next Generation funds, the dynamism of the labor market, the positive evolution of the foreign sector and the solvency of companies . and Spanish families. The Bank of Spain and the OECD have recently raised their advance estimate for this year to 2.3%.
Improvements in employment and fiscal position
Specifically, Calviño pointed out that investment has grown in Spain by 5% since the recovery plan was launched, compared to the 1.6% average in the euro zone. Consumption is also increasing by more than 2% in year-on-year terms, also better than the Eurozone average. The candidate for the presidency of the European Investment Bank (EIB) has highlighted the fact that in the first half of 2023, 60% of job creation in the European Union took place in Spain, which has registered an improvement of the stability and quality of jobs.
After recalling that in the first semester the historical ceiling of 21 million employed people was reached, Calviño has advanced that the labor market maintains “normal” parameters in the month of September. Regarding the fiscal rules, which Brussels will recover in January, it has influenced the fact that the ratio of public debt to GDP has fallen by more than 5 points in a year and last year it was almost 4 points below the objective. Looking ahead to this year, the debt will already be below 110% of GDP, while the deficit will fall to 3% in 2024, as Spain has committed to the European Commission.