Economy 04-06-2018

​Economic challenges of Pedro Sánchez

The PSOE government will have difficulties in carrying out reforms it only has 84 of the 350 seats in Congress the PP has 134.

The Secretary of Organization of the PSOE José Luis Ábalos has confirmed that the names of the government ministers of the new president Pedro Sánchez will be known "mid-week." He said he does not know if he himself will be among the new ministers and that the new government "will be parity."

Pedro Sanchez promised his position as president of the government last Saturday before King Felipe VI in an act at the Palacio de la Zarzuela.

He did it before Mariano Rajoy and without the presence of the Bible and the crucifix for the first time in democracy.

Economic challenges

The person in charge of piloting the portfolio of Economy in the Executive of Pedro Sánchez is a situation with growth rates around 3% but also with certain imbalances and under the detailed attention of the markets and Brussels.

Here are some challenges you face:

1) Budgets. The General Budgets of the State of 2018 designed by the PP and agreed with PNV and Citizens are in full parliamentary procedure. Pedro Sanchez has committed to keep them and try to move forward with public accounts for 2019 "in a timely manner." The PP threatened to make amendments if its parliamentary group of the Senate (where the party is majority) so decides.

2) Give confidence to Brussels and the markets. Precisely Sanchez's commitment to maintain the 2018 Budgets has given some tranquility in Brussels.

3) Financial sector. After the process of reorganization and restructuring suffered by the sector since 2012 the new minister will have among its main challenges to complete the privatization of Bankia.

4) Labor market and pensions. The policy on pensions, with the group of pensioners very mobilized in recent months can be a transcendent issue for Sánchez's government that, in the short term has to decide whether to raise the CPI in 2019 to which Mariano Rajoy pledged and in the middle if it faces a reform of the draft system.

5) Reform of the euro and rise in rates. Currently there is a negotiation on the institutional structure of the single currency.

El Economista

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