De Guindos says the eurozone economy is doing better than expected and the interest rate level is adequate
The Vice-President of the European Central Bank has said that the Spanish economy "is doing well" in terms of growth, with levels close to 3%, much higher than what the EU is currently projecting for the euro area (1.3% this year). He has pointed out that behind this growth lies the "very important" increase in the population due to immigration, and has warned that the regulation is "limiting the supply of rental housing" that is so necessary to meet the current demand.
European Central Bank Vice-President Luis de Guindoshas pointed out that the eurozone economy is acting "better" than they expected months ago and has ensured that the current level of interest rates is "adequate" given inflation forecasts.
De Guindos made these considerations in the framework of the Gran Via Forum, which began today in Bilbao with the BB Foundation, attended for the first time by the representative of the ECB.
The Vice-President of the European Central Bank has analysed the economic situation and prospects in the euro area and recalled that in December the projections for this area will be updated, but has advanced that they will not be 'very different' from those published by the European Commission.
He has said that the evolution of inflation in the euro area is' positive 'because it has been' slowing down 'and is approaching 2%. He has added that what is most worrying is service inflation, but he has stressed that there is generally' good news' about inflation forecasts, which, in his words, has had an impact on the ECB's monetary policy and recalled that interest rates have fallen from 4% to 2%.
The economist has pointed out that the rates have not been changed at the last three meetings of the Council because they consider the current interest rate to be "adequate".
Housing, Spain's "fundamental problem"
The ECB's vice president has assured us that the Spanish economy "is doing well"in terms of growth, with levels close to 3%, well above what the EU currently expects for the eurozone (1.3% this year).
We need to look at the factors that influence this GDP growth and see if this model is "sustainable over time." De Guindos has pointed out that this growth is based on a "very important" population growth dueto immigration.
In this regard, he has warned that efforts must be made to "maximize" the benefits of immigration and "minimize potential costs", with housing being the most prominent in these costs. "When you have a strong growth in the formation of households, as a result of immigration and population growth, you have to cope with this increasein demand, with an increase in supply ", he has stressed.
He adds that the first to absorb the new situation is not the market for new housing that "reacts a little later", but the rental market. In this regard, he warns that "regulation is limiting the supply of rental housing ".
"And the consequence of that," he says, "is that when you have a large increase in demand and supply is not enough to meet demand, rental prices immediately rise, "and he points out that this is the" current problem "facing Spain, .
You might like
Volkswagen will cut 50,000 more jobs, half in Germany and the rest in Europe
The Volkswagen group is in crisis due to strong competition from Chinese manufacturers in Europe, declining sales in China and tariffs in the United States.
France announces aid to farmers affected by drought
Farmers' representatives will meet next week with the French Ministry of Agriculture to convey their demands. The effects of drought and heat are being felt economically, but also physically and mentally.
A worker died in an accident at a winery in Lanciego
The incident took place around 12:20 p.m. and the circumstances of the incident are being investigated. Emergency services have been moved to the scene, but the operator's life has not been saved.
A new tax on fast and cheap clothing is introduced in France
Asian giants like Shein or Temu will now have to pay penalty rates of between 50 cents and 12 euros per garment.
The diesel discount goes up to 20 cents per litre, and the gasoline discount goes down to 5 cents
The tax rebate on diesel has doubled since today, while petrol has halved.
The Basque Government will meet again this Tuesday with farmers to assess the impact of the drought
Agricultural associations and trade unions, among others, want the ACV to be declared a drought zone and special measures to be taken. The meeting will take place at 4 p.m. at the headquarters of the Basque Government in Vitoria-Gasteiz.
Trade unions and employers sign the first agreement on nursing homes in Navarre
After more than five years of negotiations, trade unions and employers have signed the agreement today, which will involve more than 5,000 workers.
The electricity bill has risen 19% in August, reaching its highest level since 2022
Rising demand in heat waves and rising natural gas prices will make an average user's receipt about EUR 14 more expensive.
The 20 cent diesel rebate will come into effect on Tuesday
The measure, which has so far been reduced by 10 cents per litre, aims to combat fuel prices by 15.7% in July.
The September hill this year will be one of the hardest in years
With the return to work, the families of the Basque Country face another reality, which is that this year's September hill will be one of the hardest in recent years, as evidenced by inflation at 4.3%, a figure not seen since February 2023.