The Government cannot avoid reforms

Although the Government is determined to accuse the opposition of alarmism, the reality is that the warning signs continue to accumulate on the deterioration of the economic situation . The International Monetary Fund (IMF), which three months ago already lowered forecasts, cut the growth of the Spanish economy to 1.6% for this year and next year; respectively, two tenths and one tenth less than expected in October. This is the largest reduction among developed countries, including the entire Eurozone. Spain abandons the growth podium for the first time in five years , confirming that the slowdown is greater than predicted. IMF forecasts pulverize government officials. Despite this, both Sánchez and Iglesias continue to be installed in a reckless optimism that reminds us of Zapatero before the economic and financial crisis of a decade ago.

The data presented by the world organization at the Forum of Davos (Switzerland), which take into account the downward update made by the INE, certify that the slowdown in domestic demand and exports from Spain is being more intense than expected and its consequences will be noted in the growth of this year. Especially, taking into account the weakness of the international environment. Despite still being in a growth scenario, uncertainties loom over the Spanish economy. To the risks of a coalition - unprecedented in our democracy - between the Socialists and a radical left-wing party, the reformist paralysis joins after several years of political blockade . The Spanish economy worries about the residual inertia of the reforms carried out by the Government of Rajoy.

The European delegation will defend in Davos the revitalization of international economic institutions and the need to face the environmental challenge. Sánchez, who will intervene tomorrow in this conclave, should clarify his economic policy. A week has been enough since the new ministers took possession to verify the discrepancies between PSOE and Podemos, credited by the contradictory messages issued on the possible reversal of reforms such as labor . The fiscal increase and the notable increase in spending have triggered the business alarm. And Antonio Garamendi, president of the CEOE, warned in EL MUNDO of the danger of lack of command, since the rank of vice president of Calviño does not guarantee the coordination of the economic area. It is urgent to set a course that meets the debt and deficit goals, and implement reforms that enhance growth. Waiting to do it when another crisis comes will only harden the cuts and social suffering.

According to the criteria of The Trust Project

• IMF
• Spain
• We can
• PSOE
• Mariano Rajoy
• INE
• Davos
• CEOE
• Macroeconomy
• economy
• Crisis
• World
• Editorial

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