Despite doubling debt and deficit limits, Sanchez claims economy in Davos

The government’s president, Pedro Sánchez, has confirmed that the Covid-19 crisis in Spain and the war in Ukraine has damaged “much better” than other economies and highlighted that the country will register in 2022. The “high” rate of growth of its gross domestic product (GDP) internationally.

During his speech at the World Economic Forum held in Davos (Switzerland), the president stressed that the Spanish economy has “strong points” that give “reason to be optimistic” despite the recent impact of the war. Ukraine.

Sanchez Received a reprimand from the European Commission this Monday Which entrusted him with the task of reducing public spending to reduce the level of debt and public deficit. Spain doubles both borders required for Brussels under the Stability Treaty, which will be reactivated in 2024 at 60% and 3%, respectively.

The President has expressed himself in these terms, after the Bank of Spain has indicated the larger economies, Spain is “the worst who has done it” Regarding the way out of the covid crisis. Activity levels in Spain are still 3.4 percentage points below those seen before the start of the pandemic, according to calculations by the body headed by Pablo Hernández de Cos, while in the euro area as a whole, GDP is up 0.4 points. pre-crisis level.

Despite this, Sanchez wanted to convey the strength of the country’s economy on the international stage and pointed out that GDP grew 6.4% year-on-year in the first quarter of 2022 and the executive forecasts growth to be up to 4.3%. will reach. In 2022, “one of the highest rates in advanced economies”.

“Employments are rising, fiscal deficit is narrowing and the export sector and tourism are recovering to pre-crisis levels and acting as engines of this growth”, he said during his speech at the International Forum. inserted.

Despite this, the president has insisted on continuing to promote quality in employment, which is being achieved, according to Sanchez, with labor reform, as well as the fight against tax evasion at the national and international level. urged to continue.

gas cap “soon”

Sánchez has said that before the start of the war, the government had been “at the forefront” of efforts to raise electricity prices across the EU through temporary tax cuts and subsidies.

He also recalled that the European Council has approved a price limit for gas aimed at reducing electricity in the Iberian Peninsula, which, as he has advanced, “will be implemented soon”. “This will allow us to reduce prices by protecting homes and businesses from the extreme volatility of potential price increases in energy markets,” he assured.

Added to this is the fact that, four years ago, the government began working with the private sector on the country’s path towards the energy transition, which is reflected in the fact that Spain had 57 of the installed capacity last year. % part came. renewable energy.

In addition, the President of the Government has also called for strengthening the strategic autonomy of the European Union and stressed the importance of forging new ties with other regions, such as Latin America.

During his speech, the President wanted to highlight the role that European money is playing for both the country’s recovery and modernization and transformation. For its deployment, it has emphasized the importance of public-private collaboration to promote investment and negotiate with social agents to complete key reforms.