July 24, 2021

De Guindos calls for reforms in countries with high public debt such as Spain

De Guindos calls for reforms in countries with high public debt such as Spain


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Europe awaits reforms. The vice president of the ECB and until a few months ago Minister of Economy, Luis de Guindos, today called for "reforms" in Madrid and, in particular, "fiscal mattresses to prepare for the next crisis" that are "particularly important in countries with high public debt » in Europe, as is the case in Spain. Our country has a 98% passive of the administrations, the fifth of the EU with a more bulky debt (after Greece, Italy, Portugal and Belgium). De Guindos has made these statements in the framework of the inauguration of the Master's Degree in Law of the European Union of the Carlos III University of Madrid.

«In the last five years, the Progress in the reforms has been "slow""De Guindos pointed out, adding that as the crisis is left behind, the" urgency "governments had to pass measures to reduce the imbalances in their economy that may lead to a certain" complacency "disappears.

A repeated speech at the ECB, which observes how the continental countries have barely approved measures of draft in recent years in which the institution of Frankfurt has bought debt, supporting the liquidity of companies and countries. Some operations with an expiration date, in principle, for December of this year.

«The countries that fThey were rescued not so much for reasons as for reasons of competitiveness, "he recalled.

The Minister of Economy between 2012 and 2018 now "right hand" Mario Draghi, has advocated several pending community reforms to be made. De Guindos has advocated a "common fiscal facility" after the Stability and Growth Pact, who has pointed out that he has made "progress" but that "it is not enough".

«It can be a mutual fund or it can be a common unemployment insurance", Has deepened in this regard, showing confidence that will come after the agreement on the matter between France and Germany. «Now we have to implement it», has indicated.

Another of the instruments he has defended is the establishment of a European Deposit Guarantee Fund, that protects these savings instruments less than 100,000 euros "No matter which bank I'm in." "It is a form of take common risks but increase the guarantees on the banking system, which will increase confidence and reduce the cost of future crises, "he argued, arguing that it is the" missing leg "to complete the banking union.

Common debt

These two instruments are the intermediate way to reach the most ambitious reform, a European common treasure that can serve as a prelude to the Eurobonds. "You have to be pragmatic," he has relativized, however, stressing that the common deposit fund and unemployment insurance are priority measures.

De Guindos has also had words for his time as Minister of Economy. On the resolution of Banco Popular, the now "number two" of the ECB has argued that it proved that the resolution mechanism "works" and that in that case "it did not cost a euro to the taxpayer".


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