Unavoidable Reforms

03/07/2010

Juan Velarde: “The public sector and competitiveness in Spain share ten problems: energy policy, rigidity of labour market, the pension system, public expenditure in education, the institutional problem, the credit system, the system to retrain immigrant workers dedicated to sectors like construction, fiscal disincentives for investment, excess spending by Autonomous Communities, and an important volume of public companies in the autonomic and local levels”

“Spain is afflicted by a strong institutional problem as it devotes an important part of public expenditure to finance a series of institutions that slow down and do not activate economic life as a whole”

Elena Pisonero: “The euro is not an arrival station but a departure one”

“We have established a Welfare State as current spending which future generations will have to pay for. Shared responsibility in the management of public affairs will have to become part of a model which we will necessarily have to adopt, a model for a global society”

“The rule chosen worldwide to allocate resources has been the market. The market is indeed imperfect, but the solution is not the State because it is not a better allocator of resources than the market”

Fernando Fernández: “Reducing structural deficit in Spain is not an option but a necessity; the only question is how. There are two options: the easy one, which is the one carried out by the Government: reducing expenditure as much as possible and raising taxes. And the other option, which implies redefining the State as we know it today and redefining public services and how to finance them”

“It is compulsory make a stock adjustment in public expenditure. We must put an end to the philosophy of completely free, of unlimited rights. Public services have to cost money, there’s nothing free”

“The debt capacity of Autonomous Communities has to be prohibited. If an Autonomous Community decides to spend more than it receives, it should have two options: raise taxes of taxpayers and hope they vote blindly, or search for external finance with their own credibility and without the guarantee of the Kingdom of Spain”

Mauricio Rojas: “The reforms on the Welfare State accomplished in Sweden at the beginning of the ‘90s could be a valid model for Spain now. There is an exit to the crisis. There’s hope. Public spending can be reduced”

“European democratic Governments have behaved irresponsibly making promises that can only be fulfilled during phases of economic prosperity. The real populism has been the one practised by the European welfare States”

“The Welfare State can be refounded. Abandoning populism and adopting fiscal responsibility is necessary. The reduction of public expenditure is not cutting rights that are not such. It is waking up from an illusion”