The governor of the Bank of Spain, Pablo Hernández de Cos, stated this Monday that the priority of the new Government must be the implementation of economic reforms that are ambitious and that are carried out through broad political consensus. After his participation in the assembly of the Association of Financial Markets, he has insisted on the need to reduce the country’s fiscal and structural imbalances, such as the difficulty of the Spanish economy in converging with the rest of Europe.
“Following a package of ambitious reforms must be a priority,” he explained, immediately considering that what is “desirable” is that these reforms persist over time, which is why he advocates carrying them out with political consensus. Regarding interest rates in the euro zone, the governor has once again said that it is “premature” to think about reductions.
He has also insisted that the Bank of Spain does not see it necessary to raise the access threshold so that more families can benefit from the mortgage relief measures, as the Government intends to do. He considers that if the use of these measures is being limited so far, it is because the economy has done “reasonably well” and the labor market has resisted.
The bank tax
Regarding the possibility of the temporary banking tax being maintained over time, Hernández de Cos has repeated his idea that it would be “more important and desirable” for the money that banks would have to allocate to the tax to stay in their banks. balances to increase their resilience capacity.
Asked about Argentina and the desire of the winner of the elections to “end” the central bank, the governor of the Bank of Spain has rejected the proposal. “I think it doesn’t solve any of the problems of the economy. And dollarization doesn’t solve the problems either,” he added.