«Budget discipline must not prevent taking economic and social policy measures»

«Budget discipline must not prevent taking economic and social policy measures»


PARISUpdated:

The Minister of Economy, Nadia Calviño, defends the Budgets of his Government for 2019 in an interview with the French economic newspaper "Les Echos" in which it emphasizes that the discipline in the accounts and to fulfill the Pact of Stability are compatible with the fight against the inequalities. "Budget discipline should not prevent taking economic and social policy measures to reduce inequalities," says Calviño, who guarantees that "the commitments of the Stability Pact in matters of fiscal discipline will be met."

In fact, explains that the public deficit will go from 2.7% of gross domestic product (GDP) this year to 1.8% next, but above all that there will be a primary surplus of 0.5% and that "will allow progress in the reduction of the debt ".

Moreover, the Minister compares her Budget with what had been done previously and states that "this Government wants to follow a more responsible line that does not rely only on the good progress of the economy to reduce the debt and the deficit", with " a more progressive imposition "and a change of priorities in public spending.

"We put the accent on spending on education, science or research, especially, which will have an impact on the creation of human capital and the progression of society," he argues.

The minister justifies the downward revision of the forecasts of economic growth in Spain (they have been left at 2.6% in 2018 and 2.3% in 2019). "the decline in the outlook for world growth and international trade". In any case, he insists, Spain continues to be the "engine" of the European Union although this "less optimistic world context" vision has been integrated.

Asked about the consequences it will have the 22% increase in the minimum wage for employment and activity, Calviño responds that this increase "is in line with the negotiations between the social partners". "It is coherent in a context of growth and is in line with our willingness to move towards a more just and inclusive society," he says.

The Spanish Economy official also notes that in previous years it has been observed that "strong increases have been accompanied by strong employment growth".

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