Economists demand a thorough analysis of the situation and are “realistic” with the revaluation of pensions as the CPI spirals out of control
Spain ranks at the bottom of the OECD in public spending efficiency and has also been declining in recent years, according to a study by the Institute of Economic Studies (IEE). In a session hosted by the General Council of Economists (CGE), the President of the IEE and the Vice-President of the CEOE, Íñigo Fernández de Mesa, together with the former Minister of Public Administration, Jordi Sevilla, demanded that the efficiency of the expenditure has been evaluated, since according to their calculations the administrations could reduce their expenditure by 14% by offering the same level of public services, ie around EUR 60,000 million.
And how could it be? The President of the CGE, Valentín Pich, believes that the general state budgets should be adapted to the current reality, in addition to establishing efficient systems of evaluation and control of expenditure to avoid diversions to superfluous items, and to address the problem. tackle in a “realistic” way the revaluation of pensions.
Fernández de Mesa, for his part, pointed out that the best way to consolidate economic growth and improve competitiveness is to increase the efficiency of public spending, especially in a recovery scenario after overcoming the covid-19 crisis and the high inflation.
In addition, it calls for the introduction of transparency and accountability mechanisms; professionalized and independent management, with constant evaluation of actions, promotion of public-private partnership and promotion of tax co-responsibility and cooperation between administrations.
Seville, for its part, explained that structural reforms are needed to get Spain out of this situation, as debt and government deficit skyrocket due to the pandemic. That is why he suggested implementing the Bank of Spain’s proposals in its latest annual report and agreeing on “broad consensus” so that they last over time. According to him, it is not about making many laws, but about complying with them as efficiently as possible. As an example he gave the Minimum Vital Income (IMV) which in his opinion is ‘a good law, but not well developed’.
Source: La Verdad
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