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Plan against the crisis

A budget is not a gift basket, but an economic program

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Plan against the crisis

The government has turned management of public accounts into a chain of favours granted for electoral reasons. With an extended budget and notable delays and difficulties in building general budget of State of 2019, executive is limiting itself, against all political rationality, to favor spending in those groups or markets in which It assumes greater electoral profitability. That is explanation of rapid agreement reached by Treasury and officials ' unions to raise salaries by almost 8% over next three years; And also subsidy and aid table that has been promoted to promote housing rental. The risk that, in absence of adequate corrections, public aid will be moved without furr to an accelerated price rise, it is very high.

Without denying loss of purchasing power of officials during crisis and exactness of ir vindication, a budget is not an inorganic set of accumulated expenditure and income without order or concert. It is an integrated guide, depending on social and regional needs identified, economic policy, opportunity costs (choosing between investment or social expenditure, for example, or between acting on some taxes or ors) and actual situation of Economy. Without that guide, arbitrariness reigns and increases risk of social response. The citizens most affected by consequences of crisis look with irritation at how while ensuring that re are no resources to address cystic social deficiencies for decades, re is to stimulate markets or sectors, without offering a memory That justifies effects and benefits of decisions taken.

Previous Editorials

Enough of excuses (11/12/2017)

Basic income for debate (17/11/2017)

Blocked reforms (09/10/2017)

The 2019 budget is decisive in sustaining growth of economy. It has to cope with financial challenges (debt and interest reduction, deficit control without Commission control), responding to worsening external factors (interest rates, oil prices), compensating for precariousness and Inequality (which is already causing public conflicts) and to set up a pacted infrastructure plan. The budget should be prepared to fully integrate some of expenditures of pension system and new regional funding system.

Only with government proposing any of se goals, 2019 budget would be a success. But first step is that re is a budget, something that is promised, but re are no guarantees. The executive has no political initiative or negotiating flexibility to address any of problems mentioned. The inertia pushes Rajoy to finish legislature without reforms or political initiatives; It is likely that reform of regional funding will be left for next legislature and budget for next year, if it exceeds parliamentary process, it is a simple accumulation of pre-bends and favours granted to parties whose votes are needed to approve it. This is not doing politics; Indeed, it is a serious waste that a European country, with no capacity to act on monetary policy, renounces so negligently, fiscal policy.

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