September 23, 2020

Calviño insists that Spain will emerge from the economic crisis in the form of an «asymmetric V»


MADRID

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The economic vice president of the Government, Nadia Calviño, has insisted that Spain’s exit from the economic crisis derived from the coronavirus will be in an “asymmetric V” with a growth of more than 10% of the economy between July and Septemberand. “If we continue to control the expansion of the virus, we are confident that the output will be in the form of an asymmetric V, with great growth in 2021. Our indicators show growth of more than 10% in the third quarter of the year,” he assured in a intervention at the Brussels Economic Forum.

Without the emergency measures adopted by the Government, such as ERTE or public credit lines, Spain would have destroyed three million jobs and the economy would have fallen by up to 25%, Calviño has defended.

On the other hand, Calviño assured that Spain will make “the best use” of the aid it receives from the European recovery fund to face the consequences of the pandemic and that the Government will seek internal “maximum support” for its investment plan and reforms.

“We are working on a national recovery, transformation and resilience plan, carrying out a prioritization exercise to ensure that resources are used to promote the transformation processes that the Spanish economy needs,” said Calviño at the Brussels Economic Forum, the annual economic conference organized by the European Commission.

Before the community audience, he explained that this plan will include an “ambitious investment and structural reform agenda” that will be aligned with the priorities of the European Union and will have four axes: ecological transition, digital transformation, social and territorial cohesion and closure. of the gender gap.

“We will seek to have the maximum political and social support at home, working with the private sector, the regions and municipalities and the social agents. We are determined to act quickly and move quickly towards the recovery phase, “said Calviño in the opening speech of an event that brings together – this year virtually – politicians, businessmen and academics.

And is that one of the key points – and more difficult to negotiate – of the agreement reached in July to create a recovery fund of 750,000 million euros was the requirement that countries use aid for the priorities set by Brussels, something that will be controlled by the European Commission and the rest of the Member States.

Calviño described the agreement as a “historic step” for the future of the EU, but insisted that “much remains to be done” since the economic impact of the pandemic will continue to unfold in the coming months, for which he stressed the need to “work quick to implement as soon as possible “national plans.

Looking ahead to the next few months, he stressed that “economic forecasts are almost mission impossible”, but the focus should be on reviving growth and job creation as soon as possible and protecting investment, acting “quickly” and effectively.

In a national key, Calviño dcarried out the measures adopted by the Government to protect employment, in particular ERTE, and facilitate liquidity at the beginning of the pandemic, without which, he said, this year GDP would have fallen by 23% and three million jobs would have been lost.

These actions were equivalent to 4% of Spanish GDP in additional spending and 10% of GDP in liquidity, he said.

He added that the indicators suggest that there was a “turning point” in May, so that the Spanish economy has gone into a “reactivation” phase, and reiterated that the Government’s forecasts suggest that GDP will grow above 10 % already in the third quarter.

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