Expansion / The Governor of the Bank of Spain said that eliminate imbalances is “patriotism” and defended the intervention of Banco Madrid.
The governor of the Bank of Spain, Luis María Linde, said today during his speech at the XXII Meeting of the Financial Sector, which Spain has set an example by their ways out of the crisis. Spain, he said, has not taken the blame anybody about their problems after the bubble burst, although not solely responsible for the euro crisis, but has made doing homework.
Linde said that “it makes no sense to call austerity to correct unsustainable imbalances” as that Spain had before undertaking the reform process. Act to correct, has he said, is “patriotism”.
The governor has said that the most recent data confirm the “momentum and force of the Spanish economy.” Spain and Germany are the countries fastest growing activity, said, reporting that the growth rate of GDP in the first quarter would have reached 0.8% from the previous quarter, bringing the annual growth to 2, 5%. Employment, as estimated by the Bank of Spain, will grow 2.7% and 2.6% in 2016. However, Linde has insisted he continue on the path of reforms to consolidate this improvement this year.
The governor of the Bank of Spain also recalled the various monetary policy actions taken by the European Central Bank (ECB) in the last year. The objective, recalled, is to apply monetary stimulus to the economy, but keeping inflation below and around 2%. The bond purchase program “is already taking the first fruits,” Linde said.
On the intervention of Banco Madrid, which some have criticized, Linde has ensured that everything has been done well and not has acted rashly. In addition, the governor has refused to assess the investigation opened by Brussels on legislation of deferred tax assets in Spain, Portugal, Greece and Cyprus. He assured that the investigation is at too early a stage and pointed out that, in any case, is a subject of competition and not solvency.
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