Now is not the time for a spending spree

Now is not the time for a spending spree. | MDB files

Humphrey CarterPalma26/06/2021 10:33
TW
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Spain and Italy will receive the lion’s share of the 750-billion-euro EU rescue fund but opinions vary over whether it will help their economies roar back to life or go to waste.
The two countries will receive almost half of the 750 billion euros earmarked by Brussels to relaunch Europe’s economies that have been devastated by the Covid-19 epidemic, funded through an unprecedented joint borrowing mechanism.

And, in Spain much of that will be shared out to the autonomous communities such as the Balearics and this is where the money has be spent wisely and kept a close track of. Experts say the deep-seated problems within Spain’s economy are job insecurity, youth unemployment, a fragile pension scheme and an education system in need of an overhaul. However, the Balearic government, for example, is planning on using some of the EU funds to pay for Palma’s tram project.

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Obviously, apart from central government in Madrid, Brussels will be keeping an eye on how the Covid recovery funds are being spent and I do not think constructing a new tram is going to go down very well when there are going to be much more pressing issues to tackle as we emerge from the pandemic - such as jobs and the public’s physical and mental health to begin with.

Now is not the time for a spending spree, the full cost of Covid could take years to cover.