PRIME Minister Pedro Sanchez is banking on the fact his 72 billion euro spending spree will help revive the Spanish economy and put the country back on track. I have my doubts. Seventy-two billion is alot of money but it depends on how the money is invested, of course.
If the money is spent on paying for the furlough scheme and keeping the wolves from the door then the government is going for a short-term fix and is hoping that the coronavirus crisis ends sooner rather than later. Probably, the best thing to do would be to invest the money in job-creating ventures. I would invest a sizeable part of the cash in a good old fashioned tourism promotion campaign to remind tourists in Northern Europe why Spain is their favourite holiday destination. Spain must revive the tourist industry otherwise it will face serious problems in the future.
One of the reasons why the Spanish economy has gone into recession is because of the severe shortage of tourists last summer. Tourism is key not only for revenue but also for employment. Perhaps some of the money could be ploughed into improvement plans to uopgrade some of the holiday resorts which will not only give employment to the construction industry it would also increase the visitor expensive and provide more revenue for the tourist industry. This is a golden opportunity for the Spanish government to fix a number of problems it would be a big shame if the money was just wasted.