13 mar 2019
Entrepreneurial proposals ahead of the 28-A

CEOE PROPOSES A NEW SET OF REFORMS AFTER THE ELECTIONS TO BE ABLE TO OVERCOME THE CHALLENGES POSED BY THE SPANISH ECONOMY

Today, CEOE’s Board of Directors approved a document with the entrepreneurial proposals ahead of the general elections to be held on April 28. The report provides a detailed review of each of the activity sectors and suggests more than a hundred proposals in twenty areas. The businessmen believe that, after the upcoming general elections, a new agenda of structural reforms and various state pacts should be promoted to help overcome the great challenges that the Spanish economy will face in the future.

Entrepreneurial proposals ahead of the 28-A
CEOE’s Board of Directors approved a document with the entrepreneurial proposals ahead of the general elections to be held on April 28 — ©CEOE

The Confederation has identified four major risks at a national level: political instability, lack of budgetary discipline, the abandonment of the structural reforms process and the breakdown of the market unity. The entrepreneurs acknowledge that if all these risk become a reality, they could accelerate "the decelerating trend that the Spanish economy has already initiated" and they emphasize that "it is up to the new Government to reduce, and even eliminate these internal risks and reverse the slowdown”.

To this end, CEOE proposes four main lines of action, which would comprise all its proposals: to guarantee political and institutional stability; intensify the process of fiscal consolidation; continue with the structural reforms process, and commit to market unity.

 

Political and institutional stability

The Confederation recalls that "political stability is equivalent to credibility and legal certainty and a necessary condition for maintaining and even improving the confidence of citizens, companies and investors in our country." According to the confederation, "entrepreneurial activity benefits when the political climate is characterized by moderation and dialogue, as a basis for the sustainability of the institutions that shape our market economy: entrepreneurial freedom and right of ownership".

 

Fiscal consolidation

On the reduction of the public deficit, the document explains that it is necessary to continue working on the structural consolidation of the deficit, but basing it on those items with less impact on productive capacity and business competitiveness. This means that it should be focused on current spending and not on tax increases. In fact, the report proposes a reduction in those taxes with a greater impact on business costs.

 

Structural reforms

CEOE also believes that it is necessary to "continue the process of structural reforms" in the future, implementing an economic policy aimed at solving problems such as potentially low growth due to the high unemployment rate; the difficulty in reducing the deficit despite the high activity and employment momentum; the aging population; low productivity, or high external debt.

The document explains that "the only time in which structural reforms are usually undertaken is at the beginning of a term, without considering whether its favourable effects will be maintained over time." This is why the entrepreneurs believe that we must "look ahead and not overturn those reforms that have been key to underpin the economic dynamics and the confidence of our agents".

 

Market Unity

The Confederation also maintains its commitment to market unity and states that "we must keep working on strengthening our commitment to the Economic and Monetary Union, Spain’s constitutional framework and its territorial integrity." "It is essential to institutionally strengthen our market unity to ensure that our citizens and companies have the possibility of operating with the same requirements regardless of what part of Spain they are located in," the document explains.

CEOE emphasizes that "a united, modern, open and plural Spain is a collective achievement of society as a whole, and something of which entrepreneurs feel especially proud.  We believe it is necessary to preserve this in the future".