Bank of Spain Governor bids farewell, warning that little more than 20% of Spaniards trust Government

The Bank of SpainPablo Hernández de Cos, Bank of Spain's governor

The Governor of the Bank of Spain, Hernández de Cos, whose term of office ends next June, said farewell to Parliament yesterday, noting that just over 20% of citizens have confidence in the government, which means sharing with France the worst figure among the major European economies. In the case of political parties, the figure does not even reach 10%, and here Spain’s negative lead is indisputable. And Parliament itself is below 20%, which is also the lowest figure among the neighbouring countries.

“The differences between Spain and all the other countries are statistically significant,” explains the Bank of Spain, which also explains that “the degree of confidence that institutions generate in economic agents is a fundamental determinant of long-term growth”. This process, explained the governor, “began in the financial crisis”, and the deterioration in Spain has been “more marked than that observed in other neighbouring countries”.

Hernández de Cos also warned of the “dangers” that uncontrolled increases in the minimum wage and the homogeneous reduction in working hours could pose for the labour market. He insisted that the latest Social Security reform generates a bigger “hole” in the pension system and called for a “comprehensive review” of the tax system to improve the effectiveness and efficiency of tax collection and public spending.

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