1. Under the current economic circumstances, what we need is only one economic voice. What’s the point in having one budget minister and one economy minister? There are several overlaps. Mr Montoro draws the 2012 budget but at the same time Mr De Guindos is writing a new law (to be passed in March) which would empower him with green/red lights powers in regional goverments budgets.
2. Spain needs to improve its competitiveness levels against Germany and other competitors. What’s the solution? Easy. Just rename the economic minister calling it “economic and competitiveness minister”. Is there any other measure apart from that? It reminds me Orwell’s 1984 and its Ministry of Plenty.
3. Read the FT’s interview where Victor Mallet asks De Guindos for two times: How are you going to create jobs and growth at the same time you rise taxes? No one knows yet.
4. To run a government is like playing chess: it’s very important (crucial) how you start playing, what’s your first movement. What has been the first economic measure taken? A tax rise. Any measure to create growth and jobs? See above # 3.
5. Both Mr Montoro and Mr de Guindos are skilled professionals but simply do not fit for the position. De Guindos was Lehman president (spanish office) and did nothing to even stop the subprime mess nor he left Lehman before the collapse. It seems to me he is not the kind of person who faces problems and try to sort them out. He rather would mask it in phrases all fluff.
Mr Montoro is professor of university, although he is member of the PP ruling party, and former budget minister with PM Mr. Aznar (2000-2004), so he helped create the real estate bubble with elements such as the income-tax deductions for mortagage loans and 0% measures to favour renting instead of buying homes.
Both Mr Montoro and Mr De Guindos would be good in receiving the visit of “The Ghost of Christmas Past”, like Mr Scrooge in Dickens “A Christmas Carol”. The ghost would remind them how to avoid previous failures (self-criticism, groupthinking, bubble-prone economic policies,….).
Good luck to both.
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