“Today we are poorer than before the increase in energy costs. There is a loss, and it is unavoidable. The only thing we can do is share it,” he said.
The Governor of the Bank of Spain, Pablo Hernández de Cos, called this Wednesday in Congress for businessmen and unions to reach an income pact in the face of the effects of inflation, assuring that the loss of wealth in the face of this phenomenon “is unavoidable”: “The only thing we can do is share it.”
During his appearance before the Committee on Economic Affairs and Digital Transformation of the Lower House, to which he has gone to report on his 2021 Annual Report, De Cos has called for “an agreement at the national level” to moderate business margins and avoid increases of wages in line with inflation.
It has also asked to include, within this pact, public pensions and salaries of public employees, thus avoiding their revaluation according to the CPI. All this, he explained, to avoid indirect and second round effects, and not further aggravate a spiral whose rebound in May has surprised the Bank of Spain.
“Today we are poorer than before the increase in energy costs. There is a loss, and it is unavoidable. The only thing we can do is distribute it,” Hernández de Cos argued, pointing out that if economic agents try to avoid this “It will cause an inflationary spiral that will generate even more negative effects.”