The Governor of the Bank of Spain, Pablo Hernández de Cos, has warned that the advances in productivity in Spain "are still smaller than those registered in other developed economies." Within the framework of 'Spain Investor Day', he explained that there are multiple regulatory and structural factors that the new Government of Pedro Sánchez "must aim to correct."
Specifically, it has pointed to the excessive turnover and temporary employment as the main problems of competitiveness, in addition to the current educational system and the lack of technological advances. He also wanted to point out "the existence of regulatory elements that curb competition" and the need to improve business management.
Leaving aside these recommendations, it has recognized an improvement in competitiveness in the last ten years that has favored the increase in exports. De Cos wanted to highlight the external surpluses registered since 2012, which have left a current account balance that has increased by more than 11 percentage points of GDP since the beginning of the crisis, going from a deficit of 9.4% of GDP in 2007 to an environment surplus of 2% in 2019.
The governor considers the progress in competitiveness "palpable" if it is observed 14% reduction in labor costs in Spain between 2008 and 2019, a higher percentage than other European economies. Even so, it has considered that greater efforts must be made and has insisted on introducing regulatory measures that allow this momentum to continue.
THE CNMV WILL REVIEW THIS WEDNESDAY THE GOOD GOVERNANCE CODE
The forum also participated in President of the CNMV, Sebastián Albella, which has made further modifications to the recommendations of the Code of Good Governance for companies. This Wednesday, the regulatory body will meet to propose changes, especially with the aim of promoting point 12, which seeks to create value for shareholders.