The economy, once again in electoral campaign mode

As the elections in Extremadura approach, regional, but especially national, leaders are once again in electoral campaign mode. The problem is that this regime will extend at least to the generals. Next year, yeah … Or yes, there will be elections in Castile and León and Andalusia, because it is necessary, and it is likely that there will also be elections in communities like Aragon, where Vox does not support the budgets. If we were in another era of our democracy, or in another country in Europe, I would dare to say that in 2026 there will also be general elections. The legislative paralysis caused by the break of Junts with the government, the multiplication of corruption cases with a former minister imprisoned, the complaints of harassment within the PSOE attacking the waterline of one of the main flags of socialism, would make one think that it is impossible to finish the legislature and that the general elections are imminent. But “Spain is different” and our president is even more so, and we know that he is capable of resisting in the most complicated moments, and this one undoubtedly is.

Beyond politics, and whether or not the President of the Government resists before calling general elections, the truth is that not only politicians, but also the economy, will be subject to this type of election.

And what do I mean by electoral mode? First of all, let’s forget about any possible pact between the major parties that might be necessary to implement the measures that Spain and the Spanish people need. It is true that in this legislature the major parties raised their swords from the first minute and few agreements were reached.

We can also forget about structural reforms which may involve some form of adjustment. It is true that in recent years we have witnessed ever more spending and few measures that could be considered painful in the short term, although fruitful in the medium and long term. The public deficit is reduced not because we spend less, but because incomes soar with greater activity and the rise, cold and hot, of taxes.

But if until now little or nothing has been done in this direction, we will now see a deployment of measures which will involve more public spending. The proof is that the spending ceiling that the government was unable to approve in Congress provided for an increase of more than 8%, which gives the impression that the executive wants to have room to spend more than is already spent, which is a lot. And in recent days we are witnessing this pre-campaign mode, with announcements, for example, from the President of the Government, of new aid to promote electric cars; or the new social housing company, Casa 47, which, in theory, will allow cheap rents for middle-class families, or Yolanda Díaz’s “I invite businesses to pay”, with the new death permits… Now I am very afraid that both will use their checkbooks, which is very good for those who benefit from it at the moment, but which will mean a new burden of debt to repay in the future.

And because the elections, in this case those of Extremadura, give me an opportunity, I hope that in these three weeks that separate us from the elections of Extremadura, the President of the Government will commit, if only through electoral pressure, not to close Almaraz. Maybe it’s a daydream.

Session limit reached

• Access to Premium content is open thanks to the establishment you are in, but there are currently too many users connected at the same time. Please try again after a few minutes.

try again

You have exceeded the session limit

• You can only start three sessions at a time. We have closed the oldest session so you can continue browsing the rest without limits.

Continue browsing