Pablo Hernández de Cos, governor of the Bank of Spain, is a moderate man. So much so that, no matter how well-founded the data were, he did not want to spoil the big day of the presentation of the new government with economic criticism. His spirit as a high official prevents him from enjoying these advantages. In the final period of his term of office (will end in June next year) and this has been one of the annoying voices (albeit restrained) of the Government of Pedro Sánchez at certain times (especially on pensions). Unfortunately, despite those who felt that De Cos was the economic policy director of a PP that saw Feijóo in the presidency, he only benefited from the annual meeting of the Association for Financial Markets. Assign tasks to the manager. And this was for questions from the audience that looked suspiciously like questions a journalist would actually ask.
De Cos followed the guide: structural imbalances should be reduced (read: adjust the deficit and debt) and promote European convergence in per capita income, currently hampered by low productivity. He also used the guide to demand an ambitious reform package. The climax of his elegant argument is this: He wanted all this to be met by “consensus between political forces.” It didn’t seem like a distant utopia right now. But De Cos was adamant on very specific issues, such as rejecting expansion minimum annual income threshold below which mortgage holders fall They can benefit from the Code of Good Practice. And he also, as in other cases, rejects impositions on the sector, arguing that it is more desirable to allocate this money to reserves to face future difficulties.
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De Cos’s most momentous moment in Florence (we don’t know if it was due to its excellence, its Madrid-like nature) was when he asked a direct question about whether the forgiveness of the debt (to Catalonia) would have a chilling effect on the remaining autonomies. Pay less attention to their spending. The governor admitted that this risk existed, but brought it up to remember that this is an old problem. When the Autonomous Liquidity Fund (FLA) was created under Mariano Rajoy, the problem was essentially the same, turning insufficient funding into an excuse to spend recklessly and expect help from the State. Solution: one autonomous financing reform who promises to be one of the stars of the legislature (we’ll see if he turns out to be a star).
It is a pity that some of the audience’s questions echoed in the Madrid Casino did not reach the governor’s ears. It would be very interesting to hear whether businessmen share the view expressed through the employers’ association and, in some cases, individually: lace Amnesty Law may create legal uncertainty.