Economists also criticize the 2% limit on rent increases included in the anti-crisis plan because “it exacerbates the supply problems that the sector already faces”
June 30 marks the end of the period for applying the measures contained in the anti-crisis plan launched by the government on April 1 to deal with the economic consequences of the war in Ukraine. The executive is looking at whether they are effective in extending it and how this would be done. In this context, Fedea economists view it as “high budgetary cost” aid that doesn’t really reach those who need it most.
The Foundation for Applied Economic Studies released a report Monday describing the generalization of aid as “wasting resources by targeting groups little affected by the ‘shock’.” Moreover, experts believe that measures such as the bonus of 20 cents per liter in the fuel price only succeed in “stimulating” energy demand, which “drives up prices” and “fattenes Russia’s income from its exports”.
In his view, it would be more appropriate to allocate the increases in VAT collection and special taxes resulting from the increase in energy prices to the groups most affected by this increase. They also point to the introduction of “tariffs” on Russian gas imports, which would generate “extra revenue to compensate the losers of the crisis” and discourage the consumption of energy of Russian origin.
But the study cabinet not only criticizes this measure of the plan recently approved in Congress, but also believes that the limitation to update rents set at the CPI above 2% could help to increase the supply problems. already facing the sector is the “erosion” of legal certainty in housing. “This restriction may make sense as part of a general income agreement, but not as an independent action,” they say.
The study cabinet not only criticizes this measure, but also believes that the limitation to update rents set on the CPI above 2% could contribute to amplifying the supply problems that the sector already faces. has. “This restriction may make sense as part of a general income agreement, but not as an independent action,” they say.
And it is precisely on the income pact that they ask that pensioners and civil servants be included in it to “share the costs of the crisis among everyone”. It recognizes that there will be no ideal formula for reducing inflation, but in the absence of such a pact, this price increase could become “chronic”, which would reduce our international competitiveness and the value of savings.
In this sense, the foundation proposes that pensions – other than minimum wages – and civil servant salaries increase in 2023 with underlying inflation (4.4% in April, instead of 8.4% of the general rate) to reduce costs. of the war “as equitably as possible”. “It would be necessary to keep wage and pension growth below headline inflation,” they explain.
Also regarding the ban on objective layoffs for war-related reasons, Fedea believes it could lead to more layoffs “if it serves to prevent companies that fear they will not be able to keep their entire workforce from leaving.” participation in ERTE and other aid mechanisms.”
And they are giving their keys to alleviating this crisis, such as “rethinking” current plans to shut down existing nuclear plants. Fedea believes that the “procedures and investments” for the “life extension” should start immediately. It also acknowledges that the measure that seeks to facilitate the increase in renewable electricity generation capacity by simplifying certain procedures is “going in the right direction”, although it believes it will have a “very limited” impact.
Source: La Verdad
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
