Lack of courage
The new economic data left the Spanish government on a state of shock, and, worse, without reaction. The yearly data of the inflation is 5%, a figure almost unkown (or forgotten) for the Spanish. Simiar figures were from 1,995.
The Spanish government, as I said here and on the other blog, confronts this new reality with an attempt of deviating the focus. On the last PSOE Federal Congress, last week-end, Mr. Zapatero opted to open another confrontation on the Spanish society: more laicism, more euthanasia, more abortion… As I said, this is the recipe of Mr. Zapatero to fight the economic crisis.
It can be true that a portion of the inflation is due to external factors. The price of the oil is rising, yes. And Mr. Zapatero has nothing to do with it. And, there is clearly an increase of the price of the raw materials, specially associated with the agriculture, and … Mr. Zapatero… yes, has something to do with it. Why? Because the increase of the raw materials (wheat, etc.) is associated with several factors, including the promotion of the so called “alternative energies”. And Mr. Zapatero’s politic about energy is a clear disaster, promoting that he wants to call “clean energies”, but more expensive that, for instance, nuclear energy and, on the other hand, with a clear impact on the inflation.
The Spanish government has a lot ot things to do to confront the economic crisis, and the first step is to assume it. But there are measures that will help to clean the table and to begin to think. Re-doing the Spanish budget, correcting variables such as the forecast of the gowth of the GDP, the price of the oil and other linked factors will help to understand clearly the impact on the public accountability. From then, it is necessary to approach reforms that allow Spain to focus on the right things: increasing the productivity, decrease the lack of confidence on the Spanish bank system, increase the confidence of the consumers, and, definitively, change the model of growth, the pillars, of the Spanish economy. But this is something that requires courage, sacrifice and push. And Mr. Zapatero, unfortunately, does not have this.
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