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The German economist Friedrich Sell believes that Spain is going through a deep crisis at various levels, defending the intervention of the International Monetary Fund (IMF) in the country, in the management and control of European funds.
“I am not against the allocation of European funds to Spain, but I believe that the transfer should not be immediate, nor of great volume”, stressed the emeritus professor of the University of the Bundeswehr (Armed Forces) in Munich, pointing out a ” deep crisis “in the three pillars of democracy, executive, legislative and judicial.
“There is a government crisis, with a very weak coalition and without a majority, a crisis in parliament because the largest opposition party could not form a government and is still seriously affected by trials, and there is still a crisis in the judicial system ( …) That is why the Spanish economy and the Spanish State are going through a great crisis ”, he said.
Spain presented on October 7 the Recovery, Transformation and Resilience Plan of the Spanish Economy with the strategy for the next decade. By 2026, the country will receive 140,000 million euros in European funds.
“We must be cautious because, when we see the news, we realize that the Government announces that millions will arrive from Europe. They also say that there will be a rain of euros on the Spanish regions, which makes the Government unreliable. My suspicion is that these resources, if they can, will be used for public consumption and not for investment, “he added.
For Friedrich Sell, IMF intervention in the country is necessary, drawing bad memories of the entry of the ‘troika’ (made up of the European Commission, the International Monetary Fund and the European Central Bank) in the countries of southern Europe.
“This time it is not the case of austerity, quite the opposite. The IMF would come with a lot of money from European countries, but now with another approach where the Commission and the IMF could work together, the IMF would start the process, but the Commission could take over later when the process is well under way. “, safeguarded.
The economist, who recently spent a month and a half in Portugal, considers that the two Iberian countries are going through very different situations, beginning by remembering the first years of António Costa’s government.
“Initially there was some apprehension in the European Commission, felt in some European countries, that a far-left government had been formed, and that it could not be trusted so much in relation to the macroeconomic framework, which is so important to the Commission. European. However, what we have seen, at least from the outside, is that Costa has done a very moderate job in the macroeconomic sphere and seems to be a reliable partner for European countries ”, he stressed.
The German economist also praises the fight against the covid-19 pandemic, considering that, so far, containment measures have been taken in a timely manner.
“Apparently, the measures were taken relatively early and also, unlike in Spain, there is no apparent conflict within the government or between the central government and the regions of Portugal and this is a clear advantage over Spain. To this is added what I felt in restaurants, in the streets and in stores, that the Portuguese are reacting with great discipline and patience to the pandemic and I suppose it is not the same in Spain ”, he concluded.
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