Treasury defends the suspension of fiscal rules to strengthen the recovery

The Ministry of Finance of the DGA sees “logical and adequate” the suspension of the fiscal rules that President Pedro Sánchez asks the European Union for because the “uncertainty about the economic recovery has increased after the outbreak of the war in Ukraine”. Even if it did occur, they do make it clear that it would not imply a lack of commitment to the “sustainability” of public accounts, which is essential to guarantee services. “The suspension of the rules does not imply the disappearance of fiscal responsibility”they emphasize

To contain inflation, Sánchez proposes a “revenue pact“. And although the president of CEOE-Aragón, Michael Marchshares that it is “fundamental” to prevent inflation from continuing to grow and contain it “it must be a goal shared by all”, recalls that the income statements of companies “have already suffered significant declines” due to the drop in demand and income, and because they cannot affect the prices the “brutal increases” in energy costs, raw materials and supplies worldwide.

March adds the two years of “forced restrictions, low demand and supply difficulties”, and increases in taxes, contributions and SMI. The leader of the employer’s association reminds that inflation will imply a change in the monetary policy that is already announced and that it could suppose a rise in rates by the European Central Bank, “which will make the recovery even harder.” Therefore, it urges the administrations to “try to reduce spending and not increase public debt, optimizing the management of available resources and applying criteria of effectiveness and efficiency.”

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