Spain tends to be slow of reflexes when it comes to dealing with economical crisis. This was the case with the Government of Jose Luis Rodriguez Zapatero in 2008, and it could happen again, if the Government of Pedro Sanchez it is not fully involved in dealing with the current situation, dominated by a runaway and persistent rise in inflation. The meeting held a few days ago by the First Vice President and Minister of Economy, Nadia Calvino, with the main social agents allows us to think the opposite. At least in terms of the objective announced by the minister –to reach a three-year income pact that will allow the rise in prices to be controlled–, and the importance that the Government gave to a meeting that was also attended by the third vice-president and six other ministers and ministers. double digit inflation there was no room for the evasion of any of the actors present. Entrepreneurs know that inflation is the enemy of productivity, the unions are aware that it supposes a bankruptcy of the purchasing power of salaries and pensions, and a left government You should know that such a dramatic rise in the CPI decimates you politically and favors all kinds of populism.
It is well, therefore, that the aforementioned meeting has taken place. that would reveal substantial disagreements about what an income agreement entails should not surprise us given the complexity of the matter. The most important thing, for the moment, is that nobody closed the door to future agreements. However, if the Government wants to advance in these negotiations, it will have to make a broader approach, involving as many sectors in the pact as ministerial portfolios participated in the meeting. Effectively, the rent agreement that the country needs to face the black autumn that most observers predict must question, in one way or another, decisive social sectors to control inflation. To give two examples, civil servants and pensioners. It was logical that the Executive considered, a few months ago, revaluing pensions, according to the CPI. According to what the panorama paints at the gates of summer, it is no longer so. And it is possible that, at the end of the year, it will only be possible to agree on protection for smaller amounts. The Government should be less confused in its proposals, claiming an income moderation pact and at the same time a tax increase to cover subsidies supposes de facto a double reduction of income. Greater coherence would make it easier the necessary agreement with all social agents.
At the meeting there was talk of a “country agreement”, which was previously called a state agreement. If this is the path, and we believe it is, the rent agreement will require not only the ability to sacrifice of all the actors involved. With containment in business benefits and wages. That is, with an agreement to distribute, as equitably as possible, the costs caused by the war in Ukraine. It will also need high-mindedness, like that of the politicians who signed the Moncloa pacts in 1977. Any other attitude would be suicide, according to the economic forecasts that the Bank of Spain and the European Central Bank have pointed out. Not addressing the difficulties that many social sectors know and will know could cause an explosion that would benefit no one, except the extremists. And not sharing the concern for the sustainability of the business fabric would have the same consequences in the long term. Therefore, an ambitious income pact is urgently needed, which allows us to face an autumn that promises to be difficult.