It’s official, says Rajoy! The economic recovery is here and prospects look good
Spain’s economic recovery has arrived and the country can now look forward to a new period of sustained growth and job creation.
The pledge was made by Prime Minister, Mariano Rajoy following a meeting of the Council of Ministers to discuss the 2016 budget.
He revealed that the coming year would provide for a 0.25 per cent rise in pensions, a one per cent salary increase for public workers and that 53.5 per cent of all spending was given over to social issues.
“Recovery is here. You can look for all the blemishes you want in this reality but this change is not open for argument and it is increasingly filtering down to more people”, he said.
Next year, he added, Spain would enjoy a primary surplus and come out of the “excessive deficit process of the European Union”.
“To achieve this, we are going to reduce the ceiling on spending by four per cent,” he explained. “In other words, we will spend 5.6 billion euros less than in 2015 thanks to the savings deriving from eco-nomic growth”.
He said the autonomous regions would receive 8.7 per cent more financing, with an increase of 7.4 billion euros, in addition to a further 2.9 billion in savings on servicing debt due to liquidity mea-sures at a zero percent rate that the government has made available. In total, some ten billion euros in resources would be allocated to maintaining essential public services, such as healthcare, education and social services.
The President of the Government announced that the public accounts provide for a 0.25 per cent pension rise. “Since January 2014, almost 900,000 new contributors have been incorporated into the social security system, but we still need many more to balance out the system again”.
He also explained that the improvement in the country’s economy will help redress, little-by-little, the efforts made by public sector workers, who will enjoy a one per cent rise in their salaries, the first in the last five years. “This year, they will recover another quarter of the extra payment from 2012, and the remaining 50 per cent over the course of 2016”.
Mariano Rajoy also pointed out that 53.5 per cent of the Budget will be given over to social spending, an increase of 3.8 per cent. “In Spain, we have managed to overcome the most difficult periods of the crisis whilst maintaining the pillars of the Welfare State. More than 13 million Spaniards received some form of social protection income last year, whether pensions, for care, re-insertion income or unemployment benefits”, he indicated.
In short, he said, “this Budget closes off a very difficult period for everyone in Spain and opens up a new period of sustained growth and heightened job creation”.
“This goes towards stren-gthening the upward curve of our economy, which unless this is halted or the direction changed, will lead us into a very long period of growth and well-being, the longest period in our recent history”.
The key to this change, according to the President of the Government, has been that Spain has now enjoyed eight straight quarters of economic growth and that the forecasts point to growth of 2.9 per cent being posted this year, higher than the other Eurozone countries and the United States.
The President of the Government declared that Spain is better off today than a year ago and much better off than it was when he came to power at the end of December 2011. Moreover, he expressed his wholehearted conviction that “if we continue maintaining those policies that we have been implementing in recent times now that we have a greater budgetary margin”, the situation of those people who as yet have been unable to find a job can be resolved.