Joaquín Almunia, former Vice President of the European Commission and former European Commissioner for Economic and Monetary Affairsconsiders that Spain is beginning to emerge from the crisis “and it seems that without recession”, but while the EU “approaches full employment“, with a rate of 6%, this country has the highest chronic unemployment in the European Union. Despite the fact that he values the labor reform positively, he maintains that “it is not enough to end an endemic problem.”
He calls for a greater effort to correct this situation in which he highlights as another essential cause “the limited capacity of the Spanish economy to provide work for those who want to work.” In his opinion, “the job offer in Spain is lower than in similar countries in Europe.” The unemployment problem “is caused by our lack of reflection and concern about unemployment.”
He explained it during his speech at the III Forum JH Financial & Banking Advisorsexclusively for businessmen and executives of Canary Islands that Jorge Hodgson’s office held at the Hotel Europe Villa Cortés, on the occasion of its fifth anniversary.
Outlook for the economy and politics in Europe was the matter addressed by Almunia, for whom the invasion of Ukraine is the accelerator of a crisis to which “Europe is responding with a notable effort to stop the rise in energy prices and support the economic sectors and the most affected citizens”.
In this framework, it stands out that full implementation of the single European market has not been achieved 30 years after the deadline (1993) announced by Jacques Delors for it expired. It was about achieving the free movement of people, goods, services and capital in the EU. As examples, Almunia points out that in the European Union “we do not have a single market for energy, telecommunications or capital”.
In his analysis, he stresses that Europe “managed to avoid recession”, with tourism as an essential factor; which has the ability to avoid the shock of energy; that “we are beginning to come out of the crisis caused by the inflation generated by the prices of energy and food”; that at the end of this year, Spain will recover the level of GDP prior to the pandemic, “if things go as the International Monetary Fund says”; and that, being high, this country has the lowest inflation in Europe, whose measures he hopes “will be taken into account by central bankers”, who he hopes will act cautiously in the fight against inflation “and be careful not to fight it at the price of creating a recession”.
no to protectionism
Using recovery funds properly is an essential issue for Almunia, who points out the risk in Europe and, above all, Western Europe, of using protectionism as a mechanism to compete with China and emerging countries. “We have capacity, intelligence, innovation and economic resources, but a mistake in terms of protectionism and the old bureaucratic industrial policy would mean a loss of future that we cannot allow”, he reflects.
For Joaquin Almunia, The EU faces basic challenges such as climate change, the digital transition, the evolution of globalization, the opening of the economy avoiding protectionism, inequalities, political disaffection and the crisis of democracy. He assures that the limit of essential support for Ukraine is when NATO enters the conflict and is in favor of the EU working on its security outside the transatlantic organization, given the dependence on the sympathies towards Europe of the president in office in USA. Likewise, he advocates eliminating unanimity to agree on certain issues regarding foreign policy in the European Union.
JH Asesores Financieros & Bancarios celebrates five years as one of the most renowned law firms in the Canary Islands. It provides services to more than 86 business groups from different sectors and activities. In this III JH Asesores Financieros & Bancarios Forum, presented by María José Enríquez and with Roberto gonzalez as the guest interviewer, Jorge Hodgson Golding highlighted that these five years have been a period of great effort and sacrifice with a “magnificent and professional” team. Among those who filled the capacity were Yaiza Castilla, tourism counselorIndustry and Commerce of canarian government; Antonio Olivera, Deputy Minister of the Presidency of the regional Executive, and Ricardo Fernández de la Puente, regional deputy.
