Big businesses have warned this Tuesday that the current political deadlock is weighing on Spain’s economy, while demanding a less restrictive regulatory framework for companies to improve competitiveness.
The president of the National Association of Large Distribution Companies (ANGATE) Alfonso Merry del Val made this known at the conclusion of his organization’s general meeting.
In this sense, he pointed out, “The most obvious result of endless political war is A Freezing of reforms and impoverishment of our economyIt has gone from bordering on income convergence with the European average to an alarming decline”.
He added, “In Spain we have forgotten one of the main structural problems: Low productivity, which translates into low growth Enterprises and prohibition of investment and employment”.
Merry del Val recalled, citing Eurostat data, “It 18 countries of the European Union now have a per capita income higher than that of the Spanish, which is almost 20 points away from the mean. For those already above Spain, other countries such as Estonia, Slovenia, Lithuania, Cyprus and the Czech Republic have recently joined the force. Poland is approaching at high speed.”
“Without deviating from the progress of all these countries, the reason for these data is that we have forgotten in Spain. One of our main structural problems: low productivityIt slows business growth and puts a brake on investment and employment.”
According to him, “we can only do this by improving the productivity of companies We need to ensure the healthy growth of our economy in the long run, capable of providing better jobs and maximum well-being for its citizens. “We cannot marginalize entrepreneurs because they are the basis for building a nation’s wealth, the pillar for sustaining investment and public services.”
Merry del Wall again relied on data from the European Statistical Office to highlight that, “Since 2009, productivity in Spain has advanced 10 points below the European average. In particular, since 2019, we have lost 3.8 points of productivity, opening up a 5-point gap with EU partners.”
The manager recalled that in a recent report on the European Semester, the European Commission pointed out that one of the main factors explaining the low productivity in Spain. Market fragmentation and excessive regulation.
“Brussels warns that 60% of companies in Spain face a major obstacle to their long-term investment, double the European average. In this way, the Bank of Spain calculates For every 10% of new regulation, employment in the private sector falls by 0.5%” said Merry Del Wall.
Under these circumstances, Angate considers it necessary for the President to make an address An in-depth study of regulations to reduce costs It also supports freedom of enterprise, including promoting a flexible labor market, improving the education system and addressing the demographic challenge. “A greater deal on pensions, birth rates and immigration is urgently needed to build stability and avoid increasing social polarisation.”
Likewise, said Merry Del Val More competitive taxation and integration with the European agenda. “To achieve healthy growth in activity, employment and investment, it is necessary to create a framework that is conducive to the growth of enterprises, which increases productivity,” he emphasized.
