Felipe González, boxer, with Narcís Serra, in Suresnes
Three economists have won the Nobel Prize for demonstrating the importance of institutions in economic growth. It is the 50th year of the Suresnes Congress and the Government has sent its budget proposal to Brussels to be in line with the new financial rules.. In Suresnes, the PSOE had to decide whether it wanted to be part of the problem or the solution, and Felipe González and the new leaders chose the latter, abandoning Marxism, accepting the principles of people’s democracy and ending the division of the two Spains. which led to the Transition and the Constitution.
Since 1978, Spain has enjoyed a period of political and cultural stability in its history and accession to the European Union in 1986. It allowed us to create the capital to operate as a developed economy, which we are today. Thanks to the organization’s capital, as the Nobel Prize winners explain, Spain has doubled non-agricultural employment, increased its wages by six and created a government that supports health, education and public pensions, which very few countries have. more. At least one percent of the world’s population can be happy.
The problem is that since the crisis of 2008 we have not stopped spending on the labor costs that have been going on for decades, so that today we have the same hours used 15 years ago and we are different from the money we get from our friends in Europe and especially the United States and countries leading the technological revolution. The economic problem became a social problem, then a political one, and finally it caused an institutional problem that we are still trapped in.. The result is low job growth since 2008, wage insecurity, inequality and a serious deterioration in public education and health.
The main problem is the fragmentation of the Parliament, which seriously complicates the administration. We suffered from this epidemic with difficulty for the government to approve the urgent laws and the need to pass them with the vote of the opposition PP and Ciudadanos, since their partners in investment have voted.. We are faced with the General State Budgets: the government could not approve them this year and there are problems with those for 2025; The same thing happened to Isabel Díaz Ayuso and Vox in Madrid and the ERC in Catalonia, forcing her to wait for the elections.
Fiscal Plan until 2031
The Executive has just sent its financial plans to Brussels until 2031 and the biggest problem in achieving the goals they promise is organizational problems. Spain has a public debt of more than 100% of GDP, far from the European goal of 60%, and a public deficit close to 3% of GDP, while the commitment promised by the Government will have a deficit close to 0%. According to economist John Maynard Keynes, in 2031 they all died.
The new law limits the growth of non-debt funds to 3% per year, which depends on the economic growth of the Spanish economy, which according to the Government is close to 1%, due to the increase in employment in Spain since the year 2000. If the income is growing less than the nominal GDP, in 2031 the weight of public money on the GDP will be reduced and this will eliminate the deficit and allow the wealth created by growth to be given to reduce public debt.. These laws were introduced by the Nordic and German democracies to ensure the sustainability of public and public debt decades ago and are the national model that the PSOE chose in Suresnes.
The fact is that the current PSOE Government has not completed every year since 2018 with an average growth of 5% per year and including as all funds were spent during the pandemic in 2020 and 2021. None of the independent groups controlled by the PP have followed the money order.. Carles Puigdemont has twice defeated the Government’s approval of the bankruptcy process and obtained his support, if it is achieved, he is looking for more money and money for Catalonia. To this we must add the amount of money needed to support the General State Budgets as well as ERC, PNV, Bildu, Canarian Coalition, etc.
An impossible conversation
This is the most serious problem of the Executive in the discussion helps to explain that in the plan that was sent to Brussels it promises to increase the income by more than 3% in 2025 and 2026, the years in which the current parliament is in place, leaving the economic reform to be strong and the growth of income close to 2% of 2030 and 2031. Assuming the Budgets are approved, it will be difficult to achieve the reforms promised in Brussels and will also require negotiations with the self-governing public.many controlled by the PP, in places of polarization and conflict, grew after the report of the UCO (Central Operational Unit of the Civil Guard) on the case of Ábalos.
As Daron Acemoglu, winner of the Nobel Prize, advocated, Spain must strengthen the legal protection of the economy and reforms to increase technological development and increase productivity and wages.; Only in this way will we be able to improve people’s health and education and guarantee the pension promises that today we pay for the debt by paying the government debt that our children will pay. In this context we need to increase institutional funding, as we did in the 80s, as the world transitioned from dictatorship to modern democracy.
