Proposals to overcome the economic crisis achieving a sustainable and inclusive future

The Spanish think tank Fedea has published the final report of the Covid-19 Mixed Working Group (GTMC), made up of more than 130 professionals from very diverse sectors. The document synthesizes, updates and extends the conclusions of the thematic reports that have been published since last June and raises reflections and concrete proposals on the best way to face the complex economic and social consequences of the health crisis.

The report highlights the need to reach a broad political and social agreement around the strategy to overcome the crisis as soon as possible, including a budgetary pact for several years and reforms that guarantee inclusive and sustainable growth in the long term.

To contribute to this agreements, the report provides a set of short and long-term proposals to promote recovery and foster economic growth:

• In the short term, among other challenges, it will be necessary to “adapt general measures, such as the furlough schemes or the public guarantees, to the needs of the different sectors and to find the right specific measures to support sectors of great relevance in our economy" such as tourism, automotive and construction. All of this has to be made "without hindering the necessary reallocation of resources towards activities with better future prospects”.
• In the long term, "the fundamental aim of our economic policy must be robust, inclusive and sustainable growth". In this sense, a good use of the EU aid mechanisms and the adoption of a fiscal consolidation plan from 2022 onwards, which would include a comprehensive reform of the current tax system, would be essential.

As the report points out, "the crisis will be an opportunity that we should not miss to address in-depth reforms that are much more difficult to implement in normal times."