The Governor of the Bank of Spain,

Pablo Hernández de Cos

, has openly questioned the Government Budget project for 2021 due to its lack of realism and for including measures that he considers erroneous, such as the generalized increase in salary to public employees in the midst of the crisis .

The governor, who is himself a civil servant, has positioned himself in his appearance in the Congress of Deputies against the "generalized growth" of 0.9% in the remuneration of public workers in "

a situation of significant job destruction and accused deterioration of the public accounts "


He has sustained his criticism that this rise not only protects their purchasing power, but also makes them earn more, which he has presented as wrong in a period of suffering in the private sector and serious risks of upward deviation of the deficit and debt public.

"That said, in my opinion, it would be more convenient if, instead of adopting generalized wage increases for public workers,

assess the possibility of implementing, according to objective criteria,

more focused increases within this group, for example, in health personnel

", he stressed.

It has also questioned the recovery forecasts of the economic vice president,

Nadia Calviño

, as "optimistic" in the face of "the large battery of leading indicators" that already point to a "stagnation" in the recovery of employment and "a loss of momentum" hand in hand with the new confinements.

The governor has questioned that the expenses, despite the strong increase in the Budgets, are undervalued by not reflecting the needs to purchase sanitary material and the extension of the ERTE.

And, at the same time, he sees income overvalued, particularly with the 27,000 million euros of European funds in 2021. The governor considers it risky to bet, as does the Government, that they will strengthen the recovery due to the "historical and empirical evidence" of difficulties to execute the funds and to ensure that they serve to multiply the economic growth of the country.

Although he has insisted on the need to adjust public accounts in the medium term, once the pandemic is over, he

has criticized the introduction of tax increases in 2021

, because they may be counterproductive for the necessary economic recovery.

"It would have been preferable," he said, to delay some tax increases, because "a generalized increase in the tax burden is not convenient now."

He took the opportunity to recall that the revaluation of pensions with the CPI agreed in the Toledo Pact make the system more expensive in a structural way and that this requires taking adjustment measures to compensate for the decision.

According to the criteria of The Trust Project

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