The pandemic as a pardon for our shortcomings, the pandemic as a cover-up for mistakes, the pandemic as a blank check for political power. The most important paragraph of the opinion of the European Commission on the Budgets of Pedro Sanchez is the one that warns that, without the excuse of the coronavirus, Spain would have re-entered the club of those punished by the Excessive deficit procedure from which it exited in 2019. In total, since 2009 only one year we have complied with European governance standards.
Thus, it is not surprising that Sanchez, grateful, has announced a vaccination plan so quickly. The vaccine, or, rather, the war of announcements and communications between laboratories such as Pfizer / BioNtech or Moderna, has managed to move the perspective of the markets from discouragement to hope. After having verified with the second and third waves of Covid-19 that we were in a crisis on the WWW, which was also taking longer than expected, economic agents are now beginning to see a way out. At some point, before the summer of 2021, we will have one or more vaccines of proven efficacy and the great vector of this crisis, which is the health sector, will begin to subside.
On the same day that Brussels released its opinion on the Budgets, economist Bradford Delong wrote against austerity putting on the patch before the injury. In it he recalled Obama’s “austerity speech” delivered in January 2010. This text, little known in Spain, was five months ahead of Zapatero’s adjustment measures. In it he said: Families across the country are tightening their belts and making tough decisions.
The federal government should do the same. ‘ Delong claims that embracing austerity derailed the way out of the crisis. That as long as interest rates are low and unemployment high, it is a mistake. True, under those conditions, austerity may be a mistake, but what is by no means justified is government waste (with or without a vaccine).
The main consequence of this change in expectations is that the pressure on public spending that had begun to be drawn as a result of the budgetary discussion in the different countries has eased. The main authorities of the economy have seen that, with the exit from the public health crisis at hand, it does not make sense to demand more control or efficiency in spending from governments. Thus, unexpectedly, the vaccine advertisements have come to amnesty Sanchez’s fanciful public accounts.
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