The Economic and Social Council trusts in the effects of the gas cap as the most relevant measure to curb inflation once it comes into force; but on the other hand, he criticizes the bonus of 20 cents per liter of fuel that has been applied to all taxpayers since March and that yesterday, President Pedro Sánchez, opened up to prolonging it beyond the end of the month.
In particular, this bonus, due to its general nature, without distinguishing between beneficiaries, considers that “it is ineffective in its objective of reducing prices, fiscally regressive and that it conflicts with the objectives of decarbonization”, according to Raymond Torres, president of the commission of the CES that has prepared the Memoir on the socio-economic and labor situation of 2021, presented this morning.
In the Economic and Social Council they accept the possible usefulness of this bonus at first, to curb skyrocketing prices, but they are against its maintenance, and instead, what they demand is aid focused on the lowest incomes. "It is necessary to compensate for the differential impact, the greater impact of inflation on households, and we already know how to do it, how to directly inject compensation in sectors with lower incomes," said the president of the CES, Anton Costas.
He has referred to mechanisms similar to the Minimum Vital Income, which make it possible to identify in which households the increase in prices has had the greatest impact and alleviate it with direct transfers.
In addition, Anton Costas has criticized the fatalistic vision that some have of the Spanish economy, stating that "there is an excess of pessimism, almost fatalism, regarding the forecast of the evolution of the economy." Costas argues that there are positive elements in the reaction to the current crisis, both at the European Union level and at the Spanish level. The CES report maintains that although the Spanish economy is following a path of recovery that is less intense than expected, it will have high growth this year, 4% this year, above most European countries.
In the evolution of the Spanish economy, Costas points out that "there are elements of some optimism", such as the record collection of Social Security, the reduction of the deficit and public debt, the trade balance and the good behavior of employment. “In no way can one think of a risk of stagflation” added the president of the CES.
In his presentation of the report, Raymond Torres stated that the economy is facing two reverse currents. One, the first and at the moment the strongest, is the one that pushes towards recovery. The second current is the one that causes the energy crisis, with the rise in inflation that we are experiencing. In this context, the CES insists on the need to share the costs of the crisis between workers and employees, also adding direct aid to the most vulnerable households.
