Jordi Sevilla, ‘senior advisor’ of Economic Context at LLYC and former Socialist Minister of Public Administrations, has warned this Friday that Spain is far from experiencing a just recovery like the one that the Government seeks, since “many people are being left behind, especially young people. ”
Seville has also warned in its analysis of the Economic Context that many companies have closed because public aid has not reached them or will enter into difficulties as soon as the exceptional measures approved by the Executive to deal with the crisis end.
The former socialist minister has also made mention of the strong growth in public debt , which will be “another inheritance” that will leave the pandemic and has pointed out that the rise in inflation is an “inevitable” consequence of the huge amount of money that is is injecting into the economy.
“What we are experiencing these months cannot be called recovery”
Seville has slipped that what the country is experiencing these months cannot be called recovery, since it is only a return to the average and a rebound that follows the sharp decline in economic activity caused by the pandemic. “It will be recovery when we have returned to the level of 2019, after three lost years, and we begin to grow from there,” he said.
On this matter, Sevilla has indicated that this “badly called recovery” is being financed by the central banks and it is an issue that “cannot last”, as the American Federal Reserve and the European Central Bank are beginning to advance. “It will not be abrupt, but the withdrawal of monetary stimulus will most likely begin over the next year,” he anticipated.
Given this, Seville does not believe that European funds will take over to promote a true recovery, since, in its opinion, the purpose of these millions from the European Union is to restructure the economy in a green and digital sense . “Its objective is not to grow more, but in another way,” he explained.
Despite the high volume of funds to be received, Seville has clarified that the amount barely represents 10% of the gross capital formation of Spain in normal years. For this reason, he has insisted that in order to reactivate the economy, it will be necessary to take the example of the United States and promote plans to improve and rehabilitate the ‘stock’ of public infrastructures, as well as social investment so that the recovery is fair “really”.