Boosting growth is the only way of achieving fiscal consolidation

The seriousness of the economic crisis should prevail upon financial stability in the short term. We accept the recommendations of reducing and improving the public spending quality better than the one about tax increases.

In countries like Spain (in France it is even higher) where companies’ contribution to the Social Security is +25% (18% in Germany), a downwards labor cost revision seems urgent and reasonable. Otherwise, and mostly in the case of Spain, there is an open invitation to informal employment.

About the Author

Luis Alcaide
Luis Alcaide works as an economist for the Spanish government since 1961. He has been state adviser in the European Union and Bank of Spain director of communications. Alcaide published editorial articles in Spain's leading newspaper El País between 1977 and 1983, and in Diario 16 between 1985 and 1988. He regularly contributes to Economía Exterior and Política Exterior. He's founder member of Grupo Consejeros.

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