Puig Advocates Keynesian Policy Shift to Stave Off Recession

Ximo Puig, the leader of the regional government and general secretary of the PSPV-PSOE, urged a rapid intensification of crisis response efforts while signaling that the autumn ahead remains challenging. He suggested prioritizing practical necessities, such as ensuring food security and basic services, over political theater, noting that concrete action must come before broad promises. He emphasized that while steps are being taken, more decisive measures are still required to shield households and businesses from the impact of a tough period ahead. This sentiment came as he spoke with reporters before taking part in a formal policy gathering.

The event gathered the PSOE Federal Policy Council alongside the Prime Minister and the Secretary General of the PSOE, Pedro Sánchez, and other council members. The purpose, as described by Puig, was to discuss a shared approach for meeting the current challenges and to explore how the government can support families, companies, and individuals navigating difficult times.

Puig underscored that inflation remains a destabilizing force that weakens democratic resilience and unsettles social cohesion. He warned about the broader consequences of the policy choices being made to manage inflation and called for vigilance in ensuring that anti-crisis measures do not erode long-term stability or social trust.

He also expressed concern about the ongoing energy crisis, which he said is weighing on businesses and the overall economy. He remarked that society today expects institutions to stand firmly on the side of those most affected, particularly as the autumn months bring renewed financial strain. Puig urged policymakers to push further, aiming to prevent a recurrence of severe hardship and to blunt the severity of what could become a protracted financial squeeze.

According to Puig, there is a need for proactive support that cushions vulnerable households and preserves economic momentum. He advocated staying ahead of potential shocks and ensuring that fiscal and social measures are coordinated to avert deeper pain for families and enterprises alike.

In looking ahead, Puig reflected on the arc of recent crises, noting a shift away from the neoliberal path that he argued contributed to economic fragility. He called for a recalibration toward Keynesian-inspired policy responses designed to stimulate demand, sustain public investment, and reinforce social safety nets. He cautioned that the goal is to accelerate effective interventions while avoiding a retracement into policies that could undermine social cohesion and economic resilience. Ultimately, Puig urged a sustained commitment to the core aim of protecting people and keeping the economy on a stable, productive trajectory. [Source: PSPV-PSOE policy briefing]

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