this interest increases Interest rates approved by the ECB they won’t be enough overcome inflation If additional measures are not taken, it consumes the purchasing power of families. This Wednesday, warned by the dean of the Alicante College of Economists, Francisco Menargues, who advocated a reach Rental contract avoiding the so-called runoff inflation, and VAT deduction in core products.
Of course, Menargues, who does not want to be pessimistic, pointed out that the next two quarters will give negative results despite all the forecasts, and said, “There are still. It’s too early to talk about the recession “Because next spring, a recovery is expected in the economy in Spain,” he said.
The head of the Alicante economists condemned this “The only beneficiary of inflation is the State, because for every positive point, 2,000 million goes into his coffers. This is a simple equation. A rise in prices means an implicit increase in taxes.
For his part, college treasurer, Carmelo Riversdenies that the perfect storm that pushed the inflation rate to record levels can only be blamed on the war in Ukraine, “Since February, we already had a 7% rate.before the war broke out.
But Rives also pointed to other factors, pointing out that it all started with the covid-19 health crisis, as it found that when the restrictions were lifted, consumption increased too quickly and companies were not ready to accept this demand. “So this is a The crisis that started as a demand crisis and turned into a supply crisis at the same timeIt’s a unique but relatively new situation,” said the expert.
Another reason pointed out by the dean of the College of Economists is the increase in CO2 emissions rights, which has led to a rise in energy prices, from “25 euros in 2020 to 90 euros in 2022, and this has happened before. The Ukraine war. According to Menargues, The increase in the minimum interprofessional salary did not help either.
However, according to economists, we are facing this crisis. more prepared than beforeWith a much healthier banking system, the indebtedness of families and companies has also decreased. With regard to general government budgets, Antonio VillalobosThe accounting economist for the college board said these “contain selection measures aspect revaluation of pensions to CPI, a linear measure that will apply equally to all pensions and will not do much to combat inflation”.
Spain currently spends 170,000 million euros to pay pensions, while Social Security runs a deficit of 27,000 million.
According to the College, some retirees have a higher paycheck than some active youth. According to economists, all this must be addressed sooner or later, as the current system is not sustainable, requiring serious and profound reform to make new formulas possible, because the current model has an expiration date.