The president of BBVA, Carlos Torres, warned yesterday that the tax on banking planned by the Government is harmful in affecting a “neuralgic” sector, as – as he recalled – the president of the executive himself, Pedro Sánchez, has admitted . During a conference at the Cercle d’Economia in Barcelona as part of the Society and Economy cycle, BBVA’s top manager explained that a levy of this type will affect and cause “less investment, less growth and less employment” and will burden the economy in general. Torres does not foresee a fall but a smaller growth due to this new tax, on which the Government has shown itself open to changes related to the proposal of the European Commission.
After being presented by the president of the Circle, Jaume Guardiola, at the first event organized by the new board of directors that emerged from the polls on July 12, he admitted the need for the Administration to raise more in the current environment to support to families and companies. But he defended direct aid to the most vulnerable and that “minimally distort the functioning of the markets”.
During the conference, the president of BBVA did not rule out that further downward revisions to economic growth should be made and insisted that inflation “has impoverished us all”. That is why he advocated looking for mechanisms with dialogue “and responsibility among all” to avoid entering an inflationary spiral, in implicit reference to the income pact. And he was convinced that there will be a solution in this regard. According to his opinion, the solution is to grow, which requires above all private investment, a stable legal environment and structural reforms.
He recalled that the forecast for next year is 1.8%, although two negative quarters (technical recession) are expected, the fourth of 2022 and the first of 2023. “Everything will depend on what happens in second quarter of next year”, he said. At the same time, he recalled positive indicators so far such as the labor market, although he emphasized that the current situation resembles “the calm before the storm”. In any case, he assured that, more than GDP growth, the current concern is inflation.
As for the bank, Torres highlighted the entity’s digital bet, which in a situation like the pandemic allowed it to continue offering services. “Digitalization makes it possible to have a profitability machine”, he said.