Mon. Apr 22nd, 2019

The Circle of Entrepreneurs and the IEE believe that the hole in the accounts is 10 billion more than the Government says

The Circle of Entrepreneurs and the IEE believe that the hole in the accounts is 10 billion more than the Government says


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The Budgets pass this week the examination before the Congress of the Deputies but from the houses of analysis the verdict is that the objective of deficit will not be fulfilled. The Circle of Entrepreneurs and the Institute of Economic Studies (IEE) have been the last institutions that have shown their doubts about the income forecasts and have announced this morning that the deficit will close at 2.2% of GDP compared to the expected 1.3%, that is, more than 10,000 million euros of additional hole. As already happened in September, the president of the Circle of Entrepreneurs, John de Zulueta, has called for the early announcement of elections, before the parliamentary amalgamation of agreement with "an anti-system and other separatist party". De Zulueta has shown his support for holding elections on April 14 or "as soon as possible."

In a previous act, the president of the IEE, José Luis Feito, has rested that "let Podemos participate in economic policy is like appointing Dracula Minister of Health: the country ends up bleeding."

Sticking to the figures, the Circle considers that the collection is "unrealistic" because if the nominal GDP (that is, counting inflation) will advance 3.8% while tax revenues do so by 9.5% in 2019 according to the forecast of the Budgets, that is, 2.5 times more than the growth.

The tax increases, in the words of the Government, explain this decline but the Businessmen's Circle, through the president of the working group of Economy and the EU, Juan María Nin, has asserted "that they will not enter into force until well into the year "which will reduce its impact and impede compliance. "It is not the 1.3% that the Budgets say, it is not 1.8% of the accounts in the shadow presented by the Government. The consensus of analysts is closer to 2.2%, "said Nin.

The institution also warns that the accounts do not decisively cut the deficit and the public debt in full slowdown: compared to the growth of 2.2% that the Executive predicts, the Circle considers that it will be 2.1%. "We are leaving a very important burden to the following generations," Nin lamented, noting that the public debt is 98.3% of GDP and the structural deficit of 3.1%.

Therefore, the Circle prefers that there are no budgets and the previous ones are extended, since "80% of the tax increases they contain are aimed at companies" despite the 2018 PP accounts "are not to our liking either".

The agency has asked to promote birth policies, delay the retirement age above 67 years, raise the IV to products with reduced rates, lower Societies from 25% to 20%, a system of notional accounts in pensions and that training of company committees when they have more than one hundred workers and not 50 as they are today.

As for the IEE, its president José Luis Feito has considered "harmful" Budgets and has supported that the new taxes, the Google and Tobin tax, come in partnership with the rest of the EU countries in the form of community projects

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