Carlos Cuerpo at Esade: “Spain’s economy is more robust, well-balanced and sustainable but we must remain ambitious”
“The continuous, upward revision of forecasts for this year – and next year too – is a clear indication of that the Spanish economy is on the right track. It’s now more robust, well-balanced and sustainable in fiscal terms than before the crisis caused by the pandemic,” said Carlos Cuerpo, Minister of Economy, Commerce and Business, during his talk at Esade Madrid. However, added the minister, “We’re not yet where we want to be – we must remain ambitious.” During this first session of the “Conversations with Toni Roldán” series organized by EsadeEcPol, the minister stressed that Spain has evolved well “as regards inequality and purchasing power. Spain is one of the OECD countries where the real disposable income of households has increased most,” he said, in reference to the Government’s drive to support income and reduce inflation. Likewise, looking at the job market, employment has reached record figures, although the quality of employment still constitutes a great challenge in the future.” In this respect, Cuerpo explained the importance of the EU Next Generation Funds for overhauling Spain’s productive model, enabling significant changes in strategic sectors.
Pension reform and sustainability
As regards the regulations in Spain’s autonomous regions, he mentioned “Regime 20”, a proposal seeking to eliminate barriers and obstacles to business in province, region and city. The common objective is to simplify and standardize regulations in the different regions in order to create “a single market that can embrace firstly Portugal and then Europe.” The minister of Economy, Commerce and Business highlighted the importance of ensuring that all citizens are equal, regardless of their place of residence. “We will focus on this aspect and make it the cornerstone of the entire reform,” said the minister.
Pension reform and sustainability
Cuerpo also addressed the pension reform. He stressed that its sustainability depends on two key factors: fiscal regulation with a long-term mindset, and offsetting low birth rates by immigrant labor. “We believe that the current situation now envisaged will be sustainable, but if any deviation from this path requires additional measures, they will be implemented,” he added.
EU economy: decarbonization and social investment
At the European level, Carlos Cuerpo highlighted the importance of the Draghi Report, saying that he was not surprised by its findings or recommendations. He felt it was particularly important because it provided a basis for overhauling the European Commission – “an organization in which Spain plays a very important part, as shown by the appointment of Teresa Ribera as the EU vice president of Clean, Fair and Competitive Transition.”
The minister also mentioned the challenges facing the European Commission, especially regarding its differences of opinion with the United States and China. He urged the EU to exercise robust, strategic leadership in addition to “being open-minded but not naive” ─ because “right now, our companies are not competing on an equal footing” ─ and to tackle its two main challenges: “fiscal and governmental union.”
To achieve all this, he highlighted the importance of decarbonization as a driving force to attract investment, and also the social dimension of the EU economy which Cuerpo considers to be “the DNA of the Union.” “It’s not just about committing to cohesion and upholding democratic values and the welfare state, but also because investment in society really is profitable,” Cuerpo concluded.
