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Sánchez and Iglesias close ranks to launch the great recovery plan

2020-10-07T01:02:50.074Z


The Government presents this Wednesday a modernization based on enormous public spendingAll the political steps that the Government has taken since the return of August are aimed at sending a message: the Executive, and therefore the coalition, will last. Pedro Sánchez and Pablo Iglesias have now closed ranks in the parallel negotiation of the great plan to recover the economy - which the president and vice presidents present this Wednesday - and the Budgets, which are scheduled to b


All the political steps that the Government has taken since the return of August are aimed at sending a message: the Executive, and therefore the coalition, will last.

Pedro Sánchez and Pablo Iglesias have now closed ranks in the parallel negotiation of the great plan to recover the economy - which the president and vice presidents present this Wednesday - and the Budgets, which are scheduled to be released next week.

The driving force is a modernization of the economy through a huge increase in public spending and a six-year plan that aims to consolidate the idea of ​​a lasting government.

The Council of Ministers this Tuesday was not a formal meeting, according to several of its members.

The Government approved an unprecedented increase in public spending - up to 53% of the ceiling of the previous year thanks to the incorporation of the money foreseen in the European reconstruction fund - and the president explained the main lines of the great plan for the recovery of the economy that he presents this Wednesday and their four vice presidents will later detail, including the leader of United We Can.

The ministers of the two forces in the Government have spent weeks discussing ideas for this plan and also negotiating the Budgets associated with it.

The president conveyed to the Council of Ministers that this is a very long-term project - it must be executed in six years, an eternity in politics with at least one general election in between - and therefore it is a test of the will of the coalition to last a long time, despite its parliamentary weakness.

The coalition, several ministers consulted agree, suffers tensions because the PSOE and United We Can have fundamental differences on sensitive issues such as the Monarchy or the merger of La Caixa and Bankia, to name some of the most recent frictions.

And that is not going to go away in the future.

In fact, according to several members of the Government, it is likely that some tensions on issues like these will intensify, among other things because United We can have the strategic need to show its differences with the PSOE and claim its space.

But basically, these ministers point out, there is a very clear agreement between Sánchez and Iglesias on the economic course to follow in the coming months and that revolves around a huge increase in public spending.

That is the recipe to alleviate the crisis, which is worsening with the second wave of covid-19 and its incidence in Spain, the largest in all of Europe.

Sánchez's presentation, in which not only ministers but also representatives of the main economic sectors will participate electronically - there will be no one this time in La Moncloa due to the situation of the pandemic in Madrid and the measures ordered by Health - is designed to launch that image of government stability.

And also the lines of the recovery plan based on four axes: ecological transition, social and territorial cohesion, digitization and gender equality.

In 2021 alone, it is planned to spend 25,000 million euros of the European recovery plan to modernize the economy and especially to get it out of the deep recession in which it has gotten itself.

In the Executive branch, there is growing concern about the effects on the economy of this second wave, which has arrived much earlier than expected and in a much more intense way, with data much worse than in other neighboring countries, such as Italy.

The great concern with the recovery plan and European funds, the main weapon to get out of the crisis, focuses at this time on two issues.

On the one hand, in the European negotiation that, according to La Moncloa has transferred to the ministers, it is getting much more complicated than expected when closing the details of the fund's execution.

Sánchez's economic team is concerned about the strict conditions and exhaustive controls that are being set to receive the money and that could complicate its effective application.

And the other great concern is internal: the capacity of Spain and the Administration, not only central but regional and local, as well as private companies, to present attractive modernization plans that allow the fund to be really executed with productive investments.

All key decisions on this fund have been centralized in La Moncloa, in the president's team and especially in its economic manager, Manuel de la Rocha.

This Wednesday the master lines will be presented, which give rise to the document that must be sent to Brussels on October 15, but there is still a huge work of detail on the projects about which very little is still known.

Before it will arrive, next week if everything goes according to plan, the presentation by Sánchez and Iglesias of the master lines of the Budgets, whose negotiation is finalized by the PSOE and United We Can.

It will again be a great bet on public spending to recover the economy after the pandemic.






Source: elparis

All news articles on 2020-10-07

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