118 CHA

The Spanish economy It grows more in the short term than the EU average, yes, but supported by a mirage, which is given by the huge public spending; by an foreign sector that is the only thing that has behaved outstandingly from the productive point of view; for the accumulation of population, which increases nominal GDP, but does not cover impoverishment in PIB by capita that Spain suffers when compared to the EU average; and with the statistical artifice of extraordinary revisions never seen before for its dimension and repetition. It is an insane, artificial growth, which harms the long -term economic structure, with debt pressure, low productivity and the horizon of a subsidized economy.

Now, that we live times of high volatility derived from the commercial war that lurks, in which the EU should not enter, but liberalize more as an answer and not impoverish its citizens with tariffs; now that the Presidents Conferencewhere proposals for structural reforms should have been raised, but with Sánchez It only serves for artifice fires and to try to content its partners; And now that the PP Congress will be held, in which the main party of Spain has the opportunity to launch a message to the society of the economic reforms to be done, I want to express which, in my opinion, are the essential reforms that the Spanish economy needs, to be prepared and be able to grow in a healthy and sustainable way in the medium and long term.

1. make the labor market more flexible. It is essential to have a dynamic labor market, which eliminates hiring obstacles and that encourages it by lowering costs. It is essential, within a broad reform of the tax, social security and pension system that guarantees its sustainability, reduce the burden of social contributions, to achieve, thus, encourage hiring and increase in employment. Similarly, you have to abandon any temptation to reduce the working day, because it would only destroy employment due to increased labor costs, which would be unassumable for many companies, especially for SMEs.

2. It is necessary to adjust the public spending to the necessary and to balance the budget and even reach surplus to reduce the debt in absolute values, since these levels of indebtedness are unsustainable without the support of the ECB and generate a clear expulsion effect of the economy. It is essential to eliminate all unnecessary expense to concentrate it, for example, in defense, which is essential and whose investment can be a tractor element of efficiency improvements due to the positive effect it may have on its subsequent derivation in the civil application.

3. Modernize public functionas a productivity gains lever in its sector. Remuneration should be contemplated by objectives clearly and with the measurement of rigorous compliance, that is not a mere procedure, while, guaranteeing the rights and conditions of public employees who have already won a place, can be reforming, for the new additions in the future, the public function system, leaving the current conditions for the new incorporations only to the bodies that manage sovereignty, the rest of the work. Ordinary

4. You have to reduce tax burdens -In addition to those of Social Security contributions, before aimed-, because they generate a high labor and business cost, which makes products and services and decreases competitiveness, losing new markets or quota in existing ones.

5. Carry out a regulatory change to guarantee a true market unit that drives efficiency and ends with the bureaucratic process of different licenses, authorizations and permits for the same activity as in a region of Spain or another. With the market unit you can help the generation of economies of scale and, with it, to competitiveness profits.

6. Create a climate of trust for investmentboth national and foreign, paving the way to productive investments and transmitting legal certainty.

7. Be prepared for the deep change that supposes and that will mean the development of artificial intelligenceto adapt our economic structure so that such artificial intelligence helps us to boost economics and employment. Therefore, it is essential that the Spanish economy increase its productivity and competitiveness, because only then can it take advantage of the development of artificial intelligence, instead of succumbing to it.

With these measures, many other derived measures can be developed and deepened, but those described above constitute the spine that the Spanish economy needs to be competitive and increase its potential growth in the long term.