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The Spanish government has gone on a major spending spree splashing the cash in all sectors. Ofcourse, it was needed after three months in lockdown. Billions has been committed. But the question now has to be asked...where is the money coming from? Spain doesn't have vast reserves of cash and the Spanish government will have to borrow heavily to finance all their commitments. While Spanish Prime Minister Pedro Sanchez has talked about most topics he has never mentioned raising taxes...but this is probably the only way unless he has a magic wand.

In Britain a similar state of affairs is occurring; Boris Johnson is promising a big cash injection for the British economy...he is going to spend Britain out of recession...but who is going to pay for it...? It was former Prime Minister Margaret Thatcher who once said that like all families it was a vital that a country lived within its means. Johnson and Sanchez should remember this. Now, obviously we are living in difficult times and Johnson is right to spend but really he should only spend what he has in the bank otherwise we will just return to austerity again.

Having a debt mountain is not the way forward. Big projects announced by governments may grab the headlines but really Johnson should be boosting the National Health Service so it is better equipped to deal with a second wave of the coronavirus. Spending is good but sometimes it helps to have a little in the bank.