The Treasury has begun processing public accounts with a Preparatory Order signed by Monteiro, and in which the executive provides a vision of the economy that is far from reality.
- projections Crisis worsens: Bank of Spain lowers its GDP forecast again and warns of “more intense” inflation
Yesterday, the government started the process of preparing the General State Budget (PGE) for the next year. It did so with the publication in the Official State Gazette (BOE) of the Order for Preparation of Accounts, a document laying down the rules for preparation of PGEs and, at the same time, a reference to the economic situation. And in this part, it is the executive and the finance ministry that sell a position that seems far from reality Or, at least, not being completely faithful to what is happening.
To begin with, the document says that the Spanish economy is facing a current state of global uncertainty with the lowest unemployment figure since 2008. a solid state, This assessment coincides with the fact that the Bank of Spain (BDE) has revised its forecasts for the country on two occasions in just two months; that according to the BDE, a return to pre-pandemic gross domestic product (GDP) levels would not occur until the second half of 2023, when the eurozone had already reached that milestone late last year; Or that the OECD, also last week, made public a massive 1.4-point cut in its growth projections for Spain.
More. The text signed by the Minister of Finance, Maria Jesus Monteiro also states that Government has demonstrated its commitment to fiscal responsibilityRecognizing that the public debt will fall below 110% of GDP by 2025 with a reduction of less than 3% and all this, it emphasizes, reflects the principles of fiscal responsibility and social justice that have guided policy. Spanish economy 2018.
This last part is particularly striking because both the Bank of Spain and the Independent Authority for Fiscal Responsibility (AIReF) have on several occasions asked the executive for a credible plan to reduce debt and expand their financial space for better response. Said. Next crisis. The government has completely ignored these requests, and certainly a debt that is barely fall by 110% within three years From the current 117% it does not offer the response capability that both organizations request.
And to this it should be added that the exact first year in which Pedro Sanchez’s executive was responsible for the entire fiscal year was 2019, losses increase, It was the first increase in seven years, with a figure of 2.82% which also had to be revised by Brussels because the Treasury had initially given a low and inaccurate figure, and in a favorable economic context.
Ukraine and prices
The executive also refers to the rise in prices, a situation for which she blames solely on Russia’s invasion of Ukraine. This is something that has already been done, and organizations such as the Bank of Spain have clearly pointed out that the increase started a long time ago. mid 2021, Specific. The reasons behind this increase include, first, the rapid reactivation of demand after the end of restrictions to contain the pandemic, in a context in which production was limited, the Pablo Hernández de Cos-led body said in a recent report. stated in the document.
The government, however, continues to maintain this argument and takes no responsibility. Russia’s invasion of Ukraine is causing the economy with high prices for energy and other products, he said in sequence, recalling the measures taken to deal with the situation. Among them, the much-discussed reduction of 20 cents on a liter of fuel given its potential regressiveness, or Biggest tax cut in history on electricity,
according to the norms of