Government optimism in crisis hits inflation: “We’re heading into a more complex scenario”

III Expansion of International Forum


The government’s speech focused on Spain with the most rapid growth over the next two years did not allay concerns from traders and bankers about inflation and the rate hike by the ECB.

Albert N.
Alberto Nez Feijo congratulates Santander CEO José Antonio Lavarez in the presence of Caxabank (left) CEO Gonzalo Gortzer and CEOE President Antonio Garamendi.
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The explosive economic panorama that inflation has brought and the various scenarios proposed by governments and regulatory authorities’ responses led to an exchange of views including the approach proposed by the Vice President. Nadia CalvioThe focus was on the development of the Spanish economy, in contrast to the prudence shown by the rest of the participants.

Despite the fact that the Vice President acknowledged that the growth forecasts published by the OECD worsen the outlook, Spain is referred to as the European economy with the most rapid growth during 2022 and 2023, In his opinion, this increase is directly linked to the joint response marked by Europe to combat the pandemic, while in relation to the war, he ensured that the same economic policy axes used during the pandemic would continue to be used. . He specified that the most important effect of the war in the case of Spain is inflation.

Alberto Nez FeijoThe chairman of the PP took a very different view of the economy, when analyzing the current situation as a prelude to the difficulties he insisted, asking the PP to govern. In this sense, he recalled the achievements of Mariano Rajoy and set them as a target to repeat: As soon as it has the right economic policy, Spain will return to what it has always done: Overcoming the financial crisis, creating 30 lakh jobs, reducing energy costs, controlling the public deficit and returning to development, he emphasized.

And this will happen, in his opinion, very soon, in terms of semesters. The way it has been done will be done again in the coming semesters and in the years to come, he stressed. Why? Because Pedro Sánchez’s executive, according to Feijo, suffers from physical fatigue and therefore reacts with humiliation to criticism of PP.


they were less optimistic Jose Antonio Lavarez and Gonzalo Gortzer, CEOs of Santander and Caxabank, respectively. Financial institutions will be monitoring a message from the European Central Bank today about its strategy to control inflation with rate hikes, a measure that has been linked to the term recession as more risky. I don’t want to be pessimistic: we have time to escape the recession and the economy to enter negative territory. I believe in a soft landing more than a hurricanelvarez in a nutshell

Görtzer’s approach also served to clarify the context of the economic growth announced by the government. We expect an impact from the increase in interest rates, an effect that has not yet come but which could bring A more complex scenario, the question is how much more complex it would be.

expanding business outlook CEOE. President of Antonio Garamendialso pointed out differences with Vice President Calvio’s view in his speech that 4% growth is positive but what worries him is that it does happen in an economic context in which the deficit reaches 7%, Refusal of employers to sign an income agreement in which employers cooperate with their commitment to avoid prolonging inflation by raising prices, the impossibility of unions to meet wage demands, and a lack of commitment from the government. has been explained. In this sense, I added the entry of the employer To include civil servants and pensioners in the income settlement agreement for the government.

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