Spain's President Pedro Sánchez

Spain's President Pedro Sánchez in Seville.

05-10-2021Raúl Caro

Spain has hit the jackpot! The economy will be given a major lift as the Spanish government goes on a massive spending spree helped in no small part by a major injection of European Union cash. Everyone appears to be getting cash apart from those who have had a real nightmare during the pandemic, the self employed.

Civil servants are in line for a two percent pay rise (good for them, but private sector workers have seen their wages frozen for years), you will get a grant from the government to leave home to help pay the rent and also pensions will rise. This is all fantastic news but it might be an idea if the government had also helped small businesses which have been badly hit by the pandemic. This additional cash which is going into the economy should provide a big lift and in some ways the additional cash for civil servants will help small businesses.

The socialist-led government in Madrid and Palma are also appealing to business owners to increase the wages of their employees. Balearic President Francina Armengol said as much in a speech last month. However, it pays to be positive and after two years of bad news it looks as if Spain is on track again and moving forward. I was told recently that house prices would be rising again as a direct result of the additional cash that the government is placing in the pockets of some people. It could be argued that the government is spending to get the economy moving again but I can´t see too many people complaining.

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