This share prices have a 15 minute delay and are shown in the local time of the market in which the quote is displayed.
Economic impact of government measures during the covid crisis
The report analyzes the economic impact of the exceptional measures taken by the government during the coronavirus crisis. Specifically, it focuses on the state guarantee lines program through the Instituto Oficial de Crédito (ICO) and on the temporary suspension of contracts (ERTEs).
This analysis should help to evaluate and design the most advisable economic policies to reactivate our economy going forward.
The main conclusion of the report would be that, out of the economic measures to alleviate the effects of the crisis that the government has taken, those that directly support companies are the most effective for sustaining production, activity and employment (due to their multiplier effect on the economy and its greater relation with other economic sectors). They are more effective for the economy than direct public intervention aimed at workers and citizens.
The report estimates the direct positive impact on activity of the two most relevant measures:
- ICO guarantee lines would have an impact of 3.2% of GDP (GVA) and 663,000 jobs. In the long term and considering indirect effects, it would generate 8.6% of GDP (GVA) growth and 1,651,000 jobs.
- Temporary suspension of contracts have had an impact of 0.7% of GDP (GVA) and 151,000 jobs. In the long term and considering indirect effects, it could reach 4.6% of GDP (GVA) and 906,000 jobs.
Filter results
According to Kristalina Georgeva IMF Managing Director, lifting growth requires three things: one, regulatory housecleaning to unleash private enterprise; two, deeper regional integration; and three, preparedness to harness AI.
According to The European House – Ambrosetti, the European Union has an opportunity to boost competitiveness and growth by simplifying regulatory and supervisory frameworks, particularly in the areas of sustainability and the financial sector.
According to Ramón Casilda Béjar, Spain, in today’s complex geopolitical landscape, has the opportunity to strengthen its role as a bridge and connecting country between Ibero-America and the European Union, revitalizing investment flows in both directions.
According to @ECB, in moments of acute stress, the public often turns to physical currency as a reliable store of value and a resilient means of payment, underscoring the crucial role it plays above and beyond everyday transactional convenience
According to Juan S. Mora-Sanguinetti, in Spain a 10% increase in regulatory volume leads to a 0.5% drop in employment in companies with fewer than 10 employees.
According to Hélène Rey “In a world where stablecoins, particularly those pegged to the dollar, become an important global payment tool, we must brace ourselves for substantial consequences”.
@judith_arnal proposes reforms for the EU to advance regulatory simplification, starting with consensus on its meaning, with competitiveness as a pillar, plus coordination mechanisms and a governance rethink.
According to @iee_org, Spain has one of the most demanding tax environments for businesses within the European and international context, which may have significant implications for competitiveness, foreign investment attraction, and business expansion.
According to Christine Lagarde for the euro to gain in status, Europe must take decisive steps by completing the single market, reducing regulatory burdens and building a robust capital markets union.
According to the Bank of Spain, in a context of strong growth in transactions and prices, the conditions under which new mortgage loans are granted currently show no signs of easing in lending standards.
McKinsey notes that European private capital is half the size of the U.S. and must play a key role in boosting competitiveness, by driving innovation, scaling firms, and mobilizing the investment needed to close the gap with other regions.
IMF states that global financial stability risks have grown significantly, driven by tighter financial conditions and heightened trade and geopolitical uncertainty.