Monday, June 27

At the head of the recovery (but with conditions)

The forecasts are good, if they are fulfilled. For them to do so, we can cross our fingers with the intention of attracting good luck, that the storm worsens and that the restrictions do not frustrate the expectations of recovery, or we can all row together, take the lead, and facilitate that the forecast turns in a reality. The second option seems safer, especially since the 6.3% forecast for 2021 is subject to many conditions.

The first, that the health situation improves. We have made many sacrifices to try to save the summer tourism campaign, but we have the feeling of returning to the starting box again and again. Hospital pressure is back and pressure is back on many companies that fear that recovery will slow down. We can help reduce the rate of infections if everyone, on a personal level, acts responsibly, but also if, at the same time, it is not only recommended that precautions be taken, but also that vaccination of the younger population is accelerated.

Perhaps businesses in other countries will resist the new attacks of the virus. They have received more aid and in a more agile way, but this is not our case. The Independent Authority of Fiscal responsibility (AIReF) has found that in our country the aid granted to companies was more restrictive and considerably later. They arrived a year later than, for example, German, Italian, French or Portuguese companies. Yes, we had to wait another year, you have read that right.

Second, that the polarizing environment does not become a brake to make the most of the resources that we have, nor those that are yet to come. The goal has to be to make the reforms we need and modernize our economy, make it more resilient, sustainable and egalitarian, no other. In the Valencian Community We have already done the work of thinking about where we want to go -Alcem-nos- and, if we do not waste time and effort in confrontations that lead nowhere, Europe will provide us with part of the resources for the changes we need. The other part of the resources should come with the change in the financing model, mandatory to correct inequalities, to compensate historical debts and to avoid a recovery at various speeds depending on the autonomous community we are talking about.

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Third, just as we have to ensure that polarization does not take its toll on growth, we cannot allow the bureaucracy to do so either. Ending the obstacles of the administrations should not be a purpose but an inescapable requirement. The economic recovery and job creation to which the administrations appeal are evident when one examines all the obstacles that they themselves impose against initiatives that precisely seek growth and job creation. We cannot allow bureaucracy to hinder new projects, the management of European funds or modernization that we all seek.

Nor can we, and that is the fourth conditioning factor, support reforms that go in the opposite direction to what is appropriate at the moment. In both labor and tax matters, the Government should listen more to the demands of companies, on which the success of the recovery depends to a great extent.

Companies need flexible labor legislation, which allows them to minimize adjustments, compete on equal terms and take advantage of the opportunities generated by a demand that is taking off. Our proposals include a flexible and secure labor legal framework that allows companies to be increasingly powerful in their productivity and workers to achieve quality and stable jobs. We say yes to changes to improve the employability of younger people and to train the not-so-young in digital environments, so that the digital divide does not separate them from the job market in the future. But if what is sought is to modernize the labor market, the option it cannot be the return to a model of labor relations that does not take into account the structure of our productive fabric.

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The same happens in the fiscal area. Neither tax decisions can be alien to what happens in our immediate environment; nor to a historical stop, like the one that all sectors have experienced and like the one that tourism continues to face, can an increase in the tax burden happen. It would drag down the recovery and the effect on employment would be much more negative than the possible positive effects that are sought.

Both in labor and tax matters, the Government should listen more to the demands of companies


Companies are a fundamental part of the recovery. Therefore, the other condition to consolidate a growth pattern that reconciles economic, social and environmental development in a sustainable and competitive economy is through public-private collaboration, as the only formula to increase the power of public resources.

And indisputably, we must not miss the momentum that the European Recovery Plan is going to give us to accelerate digitization and to invest in intangible assets. We must not only learn to handle certain software, we can design it. Not only do we have to invest in technology, we have to think about what business model we want and only then invest in the right technology. The transformation, to be successful, it must be complete.

That the panorama drawn by the European Comission And for Funcas it is very positive, it is true, but also that we continue to be surrounded by uncertainty and high risks. Let’s be more responsible, so that this does not become the story of eternal return, and faster and more skillful in changes, so that our economy does not get stranded.

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