The Círculo de Empresarios considers that the General State Budgets for 2023 approved by the Government are not what Spain needs, since “they are not credible and are reckless and unsupportive”, for which it has asked the Executive to withdraw them and present new “realistic” public accounts.

The Circle understands that these Budgets are the “pre-electoral weapon” of a Government and of some parties that support it that have “lost their economic course.” For this reason, in his opinion, the 2023 PGE must be returned to adjust them to “realistic” macroeconomic forecasts and formulate a project in which the deficit begins to be reduced.

The analysis of the Budgets carried out annually by the Círculo de Empresarios was presented this Tuesday by its president, Manuel Pérez-Sala, and by the vice-president and president of the Economy and European Union Working Group, Juan María Nin. In the opinion of both, the forecasts of the macroeconomic table presented by the Government in these budgets “lack credibility and the ability to generate confidence that this instrument of economic policy requires.”

Additionally, they add that the rate of execution of the investments associated with the ‘Next Generation EU’ funds generates “uncertainty”. For the Circle, its strategy, allocation and administration “seriously question” its impact on potential GDP.

Likewise, it ensures that this PGE proposal is not supportive and may have implications for social cohesion, since both the indexing of spending items to the CPI, with an impact on structural spending, and the possible effect on the private sector via collective bargaining , such as the delay in establishing a credible fiscal consolidation path to correct the high levels of deficit and debt, transfer a large part of the cost of the current Welfare State to the younger generations “eroding the intergenerational balance”.

“In a context like the current one, marked by growing uncertainty, downward revision of the growth of the main economies, inflationary tensions and tightening of monetary policy, the PGE project should be the result of a political and social consensus, which put the general interest before that of the party or parties that make up the Government”, underlined the Círculo de Empresarios.

In his opinion, the public accounts should focus on undertaking the necessary structural reforms that favor economic growth that is “more solid, competitive and sustainable”. From the Círculo de Empresarios, the need to take into account the long-term consequences of the economic policy decisions adopted today is reiterated.

The Círculo de Empresarios shares the advisability of adopting exceptional measures to mitigate the effects of the pandemic and the energy crisis, but defends that they must be “selective, temporary and focused” on the most vulnerable groups, and “disconnected from partisan ideology”. “All this within the framework of a prudent, rigorous, effective and efficient fiscal policy to promote stable growth,” he underlines.

Entrepreneurs also miss the deflation of the personal income tax rate in the current context of loss of purchasing power due to high inflation, and criticize the “legal insecurity” in the business environment that generates the lack of specificity about how some of the the new tax measures.