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The President of the Government, Pedro Sánchez, has defended that Spain has the lowest inflation rate in the European Union thanks to the responses of the Executive at the national and European level, highlighting the country’s commitment to fiscal consolidation without affecting economic growth and job creation. This has been stated during an interview with the American chain CNBC, where he has been confident that the country’s economic growth and job creation They will be one of the “main assets” of the Government in the face of this year’s general elections.
“I think that in this very uncertain context in which the economy of the European Union finds itself, due to the war in Ukraine, the achievements and the positive economic development of Spain are one of our main assets”, has asserted Sánchez, who is in the Swiss town of Davos to participate in the World Economic Forum. Asked about the economic challenges that the world will face in 2023 -with the forecast that a third of the countries will enter a recession-, the President of the Government recalled that the international financial institutions forecast that Spain will grow above the European Union average.
Likewise, he highlighted that during 2022 the country registered a growth of 5% of the Gross Domestic Product (GDP), that the Spanish inflation rate is the lowest in the Union and that “a very strong” job creation is being registered thanks to the reforms applied by the Government, European funds and the labor reform carried out last year. In this sense, he has defended that European funds have not been overwhelmed by the events of 2022, pointing out that 80% of them will be allocated over the next few years to the digital transition and the ecological transition.
“Just to give you some figures, thanks to these funds, what we are achieving is transforming Spain into the fifth largest economy in the world in terms of wind energy production and the eighth in renewable energy,” he said, stating that the Government is transforming and modernizing the economy “also in the digital”. He has also highlighted that Spain is trying to attract investments and global companies in semiconductors and chips, one of the promises made during the Davos Forum last year.
Sánchez defends the government’s policies against inflation
The head of the Spanish Executive has maintained that Spain has the lowest inflation rate in the European Union thanks to responses at the national level and at the European level as the Iberian exception. In addition, he has welcomed the five aid packages approved so far in the Congress of Deputies to respond to the economic and energy crisis. “The results of these packages and also of the reforms that we are asking for from the beginning at the level of the European Union have led to reduce our inflation rates by five points in five months,” Sanchez has highlighted.
All in all, he has shown himself to be committed to Spain’s fiscal consolidation but “without killing economic growth and job creation”, stressing that Spain’s economic development is one of its main assets. “Our forecast is to reach a public deficit of 2.9% in 2025, and a public debt of less than 110% of our GDP”, he added. Thus, he has highlighted that in the last three years the Government it has carried out a total of 190 structural reforms to improve the economy.
Commitment to reform industrial policy and the EU bureaucracy
Sánchez stressed that “it is good news” that the United States is committed to the ecological transition after it carried out the Inflation Reduction Act in October, a measure with which the Biden Administration plans to invest 369,000 million dollars in green energy, mostly aid for class sectors such as the automobile. However, he has opted for a reform of the industrial policy of the Union, as well as its bureaucracy, to face the economic consequences that it could have for Europe the subsidies of the United States, which are intended to promote investment -to the detriment of the European industry-.
“On the part of the European Union, we have to learn and we have to reform some internal aspects of our industrial policies, such as state aid reduce bureaucracy and try to send a message to the industry around the world that Europe, and of course Spain, is a good place to establish and develop”, explained the President of the Government. Meanwhile, he has given an example to the war in Ukraine as a precedent for cooperation that serves to bring the United States and the European Union closer, highlighting the importance of bilateral negotiations in this regard.
