The economy and finance minister predicts an improvement in forecasts for the second half, “if inflation falls and the war in Ukraine does not last long”. Call an agreement to decide the salary increase.
In the opinion of the Minister of Economy and Finance, Pedro Azpiazúin the second semester the predictions economic conditions will improve, “if inflation falls and the war in Ukraine does not last long, it should improve,” according to an interview this morning in the ETB1 program ‘Egun On Euskadi’.
Although the grow is 2.2% lower than expected, growth of 4.6 is “good” and believes the calculation is “well done, taking into account the context in which we find ourselves”.
It is now known that prices in the CAV have risen by 9.5% since March last year. In this regard, he emphasized that “it is not easy” to inflation in a changing context. “About 70% of this increase is caused by the price of electricity and another 3.3% by so-called core inflation. So if we can control the prices of gas, electricity and raw materials, we can also control inflation.” he explained.
However, it has clarified that the main powers and instruments in this area are in the hands of Europe and the European Central Bank. “For example, it is in the hands of Europe to decide what to do with the price of gas and to decouple the prices of gas and electricity. If that happens, it will be much easier to control inflation.”
Asked about the income agreement, he explains that measures will have to be discussed and agreed with social, economic and institutional actors to prevent inflation from worsening or to manage the effects of the increase. With the CPI of almost 10%, “for example, we will have to consult based on what and how far we wage”. It clarifies that rising according to the IPC would mean raising the IPC itself, creating a spiral that does not end.
Therefore, Azpiazu believes that “a wage increase based on, for example, underlying inflation would make sense.” As to whether the 3.3% salary increase means a 6% loss, Azpiazu says that “of course if an effort is made now, it should be taken into account to compensate when things get better and there are no problems” . The deal he’s proposing should be statewide, Azpiazu said, and also include compensation commitments going forward.
Source: EITB
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