SANTA CRUZ DE TENERIFE, Mar. 5 (EUROPA PRESS) –
The Chief Executive Officer of CaixaBank, Gonzalo Gortázar, deems it crucial for the Spanish public accounts to begin a “clear path of consolidation,” notwithstanding the economy performing better than anticipated, which he observes with “a certain sense of bewilderment.”
Gortázar labelled it as “uncommon” that Spain is leading the growth within the Eurozone, showcasing a robust progression surpassing the European average, with tourism being a “vital element,” particularly in the Canary Islands.
Tourism will continue to display positive growth across the country as a whole, and inflation is “recovering at a much improved rate than predicted,” he mentioned during a presentation organised by the Association for the Progress of Management (APD) in the Canary Islands.
“The prevailing sentiment is that of some bewilderment, doubting that things could be going as smoothly as they appear,” confessed the CEO of the Spanish entity, who, in any case, identifies several significant factors to account for it.
The first factor he highlighted is the “cleansing” of households and businesses concerning debt, reducing the metrics nearly by half compared to 2008. This has been tremendously beneficial in significantly curbing bank arrears, he explained.
Secondly, a robust foreign sector, consistently in surplus for 12 years, a scenario unprecedented in Spain’s economic history. Gortázar thus mentioned that Spain holds a heightened level of competitiveness, primarily attributed to the numerous reforms carried out post the previous crisis, “specifically within the private sector.”
Another notable aspect underscored is the rise in employment, facilitated by immigration, alongside the “resilience” of the banking sector, which currently “stands ready to support the economy.”
THE SIGNIFICANT HURDLES THAT REQUIRE ATTENTION
That said, he also pointed out that there are substantial “challenges,” some associated, for instance, with unemployment and employment metrics, which “we cannot afford to endure.”
Regarding public accounts, he acknowledged that the elevated public deficit partly stems from measures to aid society amidst the recent coronavirus crisis, yet asserted that the structural aspect of these figures must be reduced, as it “will ultimately impact the private sector.
To this end, he specified that the situation “does not demand a complete turnaround,” but rather necessitates a “clear path of consolidating public accounts.”
He also critiqued the inadequate economic flexibility in Spain and highlighted that the structural unemployment rate reflects that “adjustments are yet to be made properly.”
He also argued that the nation faces an “unsatisfied demand for housing,” which he attributed to the inflexibility of the Spanish market. Additionally, he noted that despite growth, productivity “remains stagnant,” advocating for educational reforms to align better with technological advancements.
BECOMING A BANK IS NOT FOR EVERYONE
Furthermore, he reflected on banks being in a phase of solidity and being “effectively regulated,” yet he defended that not everyone is suitable for the job of lending money securely. “This task belongs to the bank; it cannot be carried out by the state or by anyone lacking the experience,” he asserted.
Regarding the sector’s future, he remarked that the majority of staff and branch consolidations “have been executed,” establishing an efficient framework. Conversely, the trend of reducing physical branches will persist alongside the increasing number of digital clients albeit in a gradual manner. “Our commitment is to adjust to these changes seamlessly. We also ensure that no individual is left without banking services,” he concluded.
