Guindos calls for more investment to avoid a new recession – Deia

Guindos calls for more investment to avoid a new recession – Deia

Juan Sanhermelando – Sunday, September 14, 2014 – Updated at 06: 05h

Milan – The Spanish Economy Minister Luis de Guindos, yesterday called the “self-criticism” in the economic policy of the European Union because growth is “very small” and decided to launch investment plan announced by the designated president of the European Commission, Jean-Claude Juncker and accelerate structural reforms to avoid a third recession.

“I think the criticism is always good,” Guindos said, according to Europa Press, after participating in the informal Ecofin Milan. “In Europe, the euro area, there is a situation of very low economic growth I think we have to make everyone think,” he stressed.

In his view, this does not mean that all last strategy has been wrong. “What it means is that we have to improve and we have to put the foundations for the economic policy strategy to focus on future economic growth and job creation.”

Luis de Guindos said that in his opinion is behind the stage where the main risk to financial stability and growth were “unbalanced situations from a tax point of view and from the point of view competitiveness. ” In this regard he added that “from this point of view, we have to lay the foundations of a new economic policy strategy.”

During the Ecofin meeting in Milan, the Eastern countries also advised that are beginning to feel the economic impact of EU sanctions on Russia for its intervention in Ukraine and announced that arise increase military spending, according Guindos.

“Sanctions Russia, trade restrictions, changes in expectations, are already having an impact on their growth prospects and will have to increase the budget for military purposes,” he explained Economy Minister.

To address this situation, justified the need Guindos investment plan 300,000 million Juncker promoted because “the volume of investments in Europe is below the average of other important areas “. He concluded that the low investment is one of the fundamental reasons why still “have not recovered wealth levels we had before the crisis.”