2023-06-25 02:04:01
The minister spokesperson for the Government defined the economic management of sanchismo as “impeccable”, and the minister Nadia Calviño referred to fiscal policy as “prudent”. Without blushing, she stated in “Espejo Público” that the Government complies with Europe’s fiscal rules when they are suspended and they violate them in all aspects if they are in force.
The problem is that the Government believes that getting into debt and raising taxes is managing. And no, Mr. Sánchez, that is not managing.
During the mandate of Sánchez, the Executive has shot up the public debt by 332,000 million euros. Sánchez has indebted us all by 5,000 million a month since he governs.
Debt
Public debt continues to rise and, according to the Bank of Spain, amounted to 1,526 billion euros in April 2023, 113% of GDP with a growth rate of 5.6% in year-on-year terms. It is much worse, because the total debt of the public administrations rises to 1,934 million euros, almost two trillion, and equivalent to 140% of GDP. The State deficit stands at 4.8% of GDP, almost double the deficit of 2018, and this with record income, the largest fiscal and monetary stimulus in history and the effect of European funds. The Government of Spain is the one that has increased its debt over GDP in Europe between 2019 and 2023 according to Eurostat, more than double the average for the European Union, and the worst fiscal management of our comparable economies.
Additionally, the Social Security debt has tripled with Sánchez to exceed 106,000 million euros.
No, Mr. Sánchez, that is not managing, much less doing it impeccably or prudently.
Sánchez has massively leveraged the Spanish economy and, with this, has made it much more fragile.
Taxes
In addition to indebting us all more than ever or anyone comparable, Sánchez has plundered us in taxes.
Tax revenue between 2018 and 2022 has increased by 100 billion euros. The tax pressure with Sánchez has increased by 21% and the tax effort of Spaniards is already 53% higher than the European average, according to the Institute of Economic Studies (IEE) and the Tax Foundation, which places Spain in the position 34 out of 38 in the Fiscal Competitiveness Index, after losing eleven positions! between 2020 and 2022.
poorer
Tax revenues have skyrocketed when real individual consumption has fallen, purchasing power-adjusted per capita income has fallen to 2011 levels, according to Eurostat, wages have not grown in real terms, corporate profits have not recovered to levels from 2019 to 2022 according to the Bank of Spain and employment reflects that the hours worked in 2019 have not been recovered according to the INE. We Spaniards are much poorer in absolute terms and compared to the European Union average with an unprecedented loss of purchasing power among comparable countries because the Government has massively raised our taxes by refusing to deflate them to inflation. This means that a median salary in Spain pays approximately 400 euros more in taxes only for personal income tax due to the fiscal voracity of the Government. Add the VAT, and the chained taxes with which the Government profits by taking advantage of inflation.
According to AIReF, inflation accounted for 50% of the extraordinary collection of 2022, and they estimate that in 2023 it will be 70%.
More risk of poverty
It is not surprising that Spain, according to Eurostat, is in third place, with Greece, in terms of poverty rate and risk of exclusion in Europe, climbing four places since 2018. Meanwhile, Spain reflects the largest loss of GDP per capita in the European Union since 2020 and has already been surpassed by Lithuania, Estonia or Slovenia.
Sánchez leaves an economy that in the first quarter had not yet recovered the GDP of 2019, the penultimate in the European Union after the Czech Republic but the first in increasing debt, according to Eurostat.
Companies and freelancers
The self-employed have suffered more quotas, more taxes and labor costs, like companies, and the Government has suffocated everyone with taxes, collecting triple with inflation what it “gave” in aid. An example of the trilerism of the Government is the Iberian exception. Spain closes 2022 with the seventh highest electricity tariff in the European Union, 22% higher than the average and 40% higher than that of Portugal, which also has the Iberian exception, according to Eurostat. The Government charges you more than what it tells you that it gives you in aid…. and even so, it indebts us much more.
No, Mr. Sánchez, plundering citizens and getting into debt is not managing.
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