the next quarters “will be complex” due to inflation





The First Vice President and Minister of Economic Affairs and Digital Transformation, Nadia Calviño, warned this Monday that the coming quarters “are going to be complex” in the face of a “more persistent and higher” inflation scenario than planned and has advanced that it will bring together the social agents this Wednesday to promote a rental agreement that allows to provide “confidence and stability”.

“We have to prepare ourselves and work with a more persistent and high inflation scenario, in which the coming quarters are going to be complex,” warned the Government’s economic minister in statements to the media after the eighth meeting of the Economic Advisory Council. the vice president has ruled outhowever, the possibility that in the coming quarters the evolution of the Gross Domestic Product (GDP) is negative.

Faced with this scenario, Calviño has highlighted the “importance and convenience” of social agents being able to agree on a rental agreement to provide “confidence and stability” to workers, companies and society as a whole.

Concerns about the high price of energy and food

At Wednesday’s meeting, the Government will try to promote, support and channel the dialogue between companies and workers to contribute to this income pact that allows it to continue facing current challenges and in particular those derived from the rise in prices at the international level.

“War makes us all poorer and it is very important to guarantee a fair distribution of its cost”, the vice president pointed out after defending that the measures put in place by the Government are making it possible to contain inflation. However, Calviño has recognized that, together with energy, there is a growing concern on the part of experts regarding the rise in food prices.

Inflation settles at 10.2%, the highest figure in 40 years

For this reason, the economic head of the Government has defended that Spain has mobilized an “unprecedented” volume of resources greater than 1% of GDP only with the measures adopted in 2022, which are allowing prices to be contained by 3.5 percentage points.

The vice-president has assured, however, that during the meeting, the experts have verified that the Spanish economy maintains strong growtheven in this international context of “maximum uncertainty” due to the war in Ukraine, geopolitical tensions, the normalization of monetary policy, disruptions in global supply chains and inflation.

On The work markethas insisted on its “positive evolution”, in his “extraordinary behavior” and in an “improved stabilization” in sectors with high rates of temporary employment such as hospitality or construction.

Negotiations for a rent pact stalled

The Government resumes an income pact that it already proposed a few months ago, but that ended up leaving in the hands of employers and unions and circumscribing a salary agreement.

social agents they were unable to reach an agreement for employment and collective bargaining for this year, because, aside from the increase to be agreed upon, a clause was essential for the unions to guarantee that wages did not lose purchasing power at the end of the year, something that was unaffordable for the patronal.

Every time the Government has talked about an income pact, the unions have asked it to sit down with them and the employers to “define in a consensual way how much each party puts to face the increase in prices that our economy is suffering”.

In addition to salary policy, the unions see it necessary to talk about what is going to happen with company profits and surplusesas well as what measures the Government can implement to protect the most vulnerable families and what it is going to do to effectively contain prices.


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George Holan

George Holan is chief editor at Plainsmen Post and has articles published in many notable publications in the last decade.

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