The President of AIReF, Cristina Herrero, took part today in the Lunch-Q&A Session organised by the Association for Management Progress (APD), held at the Intercontinental Hotel in Madrid.
During her speech, she reviewed the short-term economic and fiscal situation. On the economic front, the President stated that the dynamism of the second quarter, strong migration flows, and a smaller-than-expected slowdown in global trade will likely lead the institution to revise its growth forecasts for the Spanish economy upward in 2025.
On the fiscal front, she explained that AIReF has improved its forecast for the General Government (GG) deficit to 2.6% of GDP in 2025 (2.4% excluding the impact of the Isolated High Altitude Depression – DANA), thanks to strong tax revenue performance. However, she pointed out that the primary concern in this area is not so much the significant figures as the institutional weakness caused by inconsistencies between the national and European fiscal frameworks, as well as the lack of budgets, stability targets and a Budgetary Plan.
In the medium and long term, the President of AIReF considered that the most significant challenges are those arising from demographic ageing and the need to boost productivity to sustain economic growth and the sustainability of public accounts. In this regard, she emphasised the importance of educating and training human capital, as well as creating an institutional and productive environment prepared to adapt to technological transformations.
Lastly, she outlined the work being carried out by AIReF in the evaluation of Temporary Disability (TD), within the framework of the Spending Review cycle. This evaluation is not only important for the Government but also for the business sector. Accordingly, the evolution of spending, its determinants and the governance of the system will be examined to formulate proposals that will impact the public accounts, as well as the effectiveness of the policy itself and its impact on the economic system.
After her speech, a Q&A session was held with the attendees, in which key issues were debated, such as the competitiveness of the Spanish economy, fiscal consolidation commitments within the European framework, the efficiency of public spending, the execution of European funds and the structural reforms needed to address demographic and productive challenges.
