The Government highlights that the economy has returned to pre-pandemic levels in all metrics

"Spain opens the way". The Government takes heart of the economic management to have been the first country to which Brussels has pre-authorized the 10,000 million euros corresponding to the first tranche of European recovery funds. Given the reduction in growth expectations by organizations such as the IMF or AIRef, the first vice president, Nadia Calviño, has assured that the economic activity that existed before the pandemic has recovered "in all metrics" and that they have improved in some cases, thus arguing that deficit targets will be met.

"This strong recovery in economic activity and employment is transferred to public accounts with collection levels 10% above what we had anticipated for the year and three points above pre-ndemic", Calviño said in the conference. press after the meeting of the Council of Ministers. Faced with the bad omens from the right wing and from some organizations, Calviño stressed that the improvement in "the economic recovery has accelerated in the second part of the year." "Our objective is that it is not a temporary outbreak," said the economic head of the cabinet, who hopes that it will be a "sustained" recovery over time.

Calviño has exposed the macroeconomic data that justify his optimism: the recovery of daily economic activity that existed before the pandemic, an unemployment level below that of 2017, the best month of October in employment data, or the recovery of the youth employment data from precovid times, the positive evolution of Social Security affiliation, and the recovery of national tourism data or the improvement of foreign levels, among others. "The intense dynamism brought about by the economic recovery will make it possible to reach the fiscal objectives for 2021," the Government presumes.

All this, according to the vice-president, before reaching the "cruising speed" in the management of the European recovery funds that she has said will be achieved throughout 2022. What she did not want to reveal is how much has already been executed. the first 27,000 million euros that were budgeted in the public accounts of 2021. Calviño has emphasized, however, that 65% of the funds are already committed, that is, that it has already completed the bidding process or has been transferred to the entities that are going to execute them.

The optimism of the Government comes the same day that Spain approaches the maximum price of electricity in the wholesale market, although in Moncloa they maintain that Pedro Sánchez's promise that it will not affect households will be fulfilled thanks to the measures implemented by the Government. The Vice President of Ecological Transition, Teresa Ribera, recalled that "unfortunately" it is a situation that affects all neighboring countries.

What it has guaranteed is that in the coming months the Government will maintain relief measures so that the wholesale price does not imply a reduction in the pockets of citizens, although it has not specified what those measures will be and whether those relating to taxes will be extended - VAT reduction., among others-. The Government maintains that they have to be studied. "We are considering different measures, including fiscal ones, not necessarily the extension of what we have approved in the last four months," Ribera said.


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