Spain will not fall if Europe continues to wage moderation – elEconomista.es

Spain will not fall if Europe continues to wage moderation – elEconomista.es

José Luis de Haro washington

14:00 – 11/10/2014

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The Group of 20 presses to stimulate public investment in infrastructure . The Fund recommends reforms that lower hiring employees with low education.

The return of economic weakness in the eurozone at the center of international scrutiny was evident yesterday during the meeting of Ministers of Finance and Governors of Central Banks of the Group of 20 held yesterday in Washington. The commitment to growth through investment in plant facing fiscal conservatism championed by the Old World, thanks to the German steel fist infrastructure. However, the Spanish economy is separating itself from the rest of their European peers after the efforts of recent years, sacrifices that have not yet come to an end.

From the International Monetary Fund, where the meeting was held , they again reveal that the eurozone economy will grow only 0.8 percent this year while the expansion in 2015 and 2016 to reach 1.3 and 1.7 percent respectively. Not to forget that the institution technicians have miss alarms about the 40 percent chance that Europe back into recession. A nightmare that only structural reforms will be avoided by the relevant countries.

“Spain and Ireland are the bright spots in the current situation” said yesterday wheel Poul Thomsen press, acting director of the European Department of the IMF. “The euro zone has turned the page” regarding the situation in recent years, he said. That said, the weakness in key economies such as Germany, Italy and France have jeopardized the leaders worldwide.

Does this mean that Spain could change course if the “double European recession “materializes? “ The challenge is to maintain economic growth and employment recovery. That means preserving the competitive gains achieved ” explained Phil Gerson, deputy director of the European Department of the Fund, when asked by this newspaper. In this regard, he said that our country should attempt to alleviate the “unemployment crisis”, hence to recommend that “wage moderation should continue.”

One fact that stands out from the recommendations of the International Labour Organization (ILO) and the Organization for Economic Cooperation and Development (OECD) has warned that if wages continue to decline in Spain, not will be recovery. From their point of view, we should take advantage of the renewed improvement in our country to agree an increase in salaries. A recipe from the IMF, European Department did not consider appropriate.

Not only that, but our country has registered a growth “relatively bright,” as said Gerson, Spain also needs reforms to improve the business environment and efficiency, as well as train the unemployed to count with the skills to return to work skills, and reforming the fiscal framework so that it can adapt abarantando hiring workers with low education.

In the framework of the meeting of finance ministers of the G-20 “There was a lot of pressure on the weakness in Europe, due to low inflation and low growth,” he told Reuters Jyrki Katainen, the next vice president of the European Commission. “In the meeting continued drawing the plan to shore up growth through public investment in infrastructure, and a measure sponsored by the IMF these days. This position, which do not share fiscal fetishism of the German Government, comes amid glaring weakness in the economy of the euro zone. “Monetary and fiscal policies are not enough,” acknowledged yesterday the secretary of the Australian Treasury, Joe Hockey, referring to the eurozone. “It’s important to consider provisions for infrastructure and structural reforms,” ​​he said.

The governor of the Bank of Japan, Haruhiko Kuroda, fell upon the meeting focused on investment in infrastructure, particularly in economies advanced. A position that still do not like the Germans. Bundesbank President Jens Weidmann, it carried on the German Finance Minister, Wolfgang Schäuble, who said that the lethargy does not get “writing checks” to alert their colleagues in Washington about the dangers of fiscal stimulus in the short term.

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