Cuerva (Cepyme) hopes that the Government "has been convinced that lowering taxes" boosts the economy

MADRID, 27 Jun. (EUROPA PRESS) -

The president of the Spanish Confederation of Small and Medium Enterprises (Cepyme), Gerardo Cuerva, hopes that the Government "has been convinced that lowering taxes encourages and strengthens economic systems", referring to the reduction from 10% to 5% in VAT on electricity, contemplated in the new anti-crisis decree.

"Hopefully, the path that the Government has taken with this tax cut is the path and the prelude to future exercises," Cuerva told the media upon arrival at the Summer Course of the Association of Self-Employed Workers (ATA).

However, the president of Cepyme considers that the Executive, with this package of measures, skips "something fundamental, which is the economic system" and reproaches the Government for wanting to help the individual without betting on economic systems.

"Unfortunately, we have a government that continues without betting and without believing that the vehicle we need to get out of the situation we are in and progress in society is the company," he specified. In this sense, Cuerva has argued that the Welfare State and social policies are born from private activity and the income generated by companies.

Cuerva has also described the current economic situation as "complicated", with profit margins that "endanger hundreds of thousands of companies" in Spain.

To this is added the end of the bankruptcy moratorium, on Thursday, June 30, approved for the first time in March 2020, during the pandemic, and extended later.

"We have been warning of this situation for months. Small and medium-sized enterprises (SMEs) are reactivated but have not recovered and this can be seen at the time of competitions. We believe that we must continue to bet on the company if we want to get out of the situation in which we are", said Cuerva.

The president of Cepyme has also alluded to a survey prepared by his organization, in which 15% of the companies claimed to be "at a critical moment", not only in terms of cleaning up their accounts but also viability.