Escrivá says that massive tax cuts "penalize" the country and warns of the case of the United Kingdom

SANTA CRUZ DE TENERIFE, Oct. 7 (EUROPE PRESS) -

The Minister of Inclusion, Social Security and Migration, José Luis Escrivá, criticized this Friday the structural and massive tax cuts because they "penalize" State collection and do not solve the difficulties of the segments of the population most affected by inflation.

At a breakfast organized by the Association for Progress and Management (APD) he defended applying "gradual" measures to generate "credibility", just as the central banks are doing with interest rate rises, which try to "direct " expectations in the medium term to control an "extraordinarily intense" inflation.

He has defended that societies cohesive by the public sector "generate protection" for society and companies and "more positive dynamics", stressing that "the paradigm of the Nordic countries has triumphed", which are a "world reference" for presenting higher income , more productivity and more equality.

Escrivá has insisted on taking measures with "consensus" and has given as an example the case of the United Kingdom, which proposes a "very important reduction" in taxes and then "the market and public opinion" have "forced it to turn around unusual way."

He commented that the fiscal measures "have to be transitory so as not to weaken public finances" and in this sense, he stressed that Spain is going to end the year with a GDP deficit of 5%, but two points are only due to short-term spending.

In fact, he pointed out that the Spanish risk premium evolves "in the same line" as in France and Germany since the war in Ukraine broke out.

The minister has supported his position that "when there are doubts" job creation is stopped "and this has not happened", to the point that he is "surprised" by the good data from the Canary Islands, since in the previous financial crisis the destruction of employment in the Canary Islands "was 140,000 people" and when it was recovered, the coronavirus pandemic arrived.

It has also valued the community "European response" to inflation and to the effects of the pandemic with "synchronized and common policies", protection mechanisms and the deployment of the resilience plan.