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The Guindos deny responsibility for the banking tax report

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ECB Vice President, Luis de GuindosEnsures that it does not influence the report content of the above component Future Spanish taxes to the Bank, because it is “practically impossible for an individual” from the Governing Council to influence its contents. By a vote the body warned that the The new temporary tribute could be “harmful”. For the area and asked the possibility that the component can transfer to the end client. The assessment has fallen like a pot of cold water on Moncloa, from which he began to criticize in an ironic tone, thanking de Guindos for “willingness to help” and for it. Although he took note of that opinionThe government will go ahead with its road map.

In this context, de Guindos expressed his opinion when asked about the criticism leveled at him by the Prime Minister, Pedro Sánchez, for his views on the banking tax. CEO “Full respect”., but to suspend any hint of doubt on the part of Spain in this respect. Thus, each of the steps followed by the ECB before issuing the opinion is reviewed and clarified, before reaching the Governing Council of the ECB, This type of vote goes through the ECB’s executive and by previous various estates.

“It is practically impossible for one person to influence this kind of decision, Because the ECB makes collective decisions And there it is impossible for one person to have significant influence trying to bias the ECB’s opinion in a particular area, he added. Financial days of S’Agaró And in the subsequent discussion with those present on this forum.

Predictions of a “technological recession”.

In parallel, De Guindos has warned that the forecast of negative growth rate for the next two quarters A “technological recession” will occur in the euro zone and “low growth” in 2023 and Inflation that will “remain high”. De Guindos referred to the complex macroeconomic environment, where he assured that the European Commission’s latest economic forecasts put a “technical recession” as the central scenario in the euro zone. The result of the evolution of the upcoming quartersAnd added that the ECB’s forecasts to be released in December would not be “very different”.

He has also called Avoid conflicts between economic and fiscal policiesAnd it has been argued that it should be Receive a bearish in a price rally To also give a clear indication of “stabilization of interest rate hikes”. “In the third quarter you are already looking at a significant slowdown (of the economy in the euro zone) and the European Commission is already announcing a very likely negative growth rate, which May be extended till first quarter of next yearWhich would be the definition of a technical recession by accumulating two quarters with negative growth rates”, he indicated.

Banks will have to increase their “provisions”.

Prior to this interaction with those attending the conference in S’Agaró, de Guindos urged that reforms in the banking sector “not be blinded” by an increase in interest rates in the short term, because, as he argued, Banks will have to increase their “provisions”. As a result of the current crisis.

In this initial intervention, he pointed out that banks are going through “better” conditions than they were “at the beginning of the financial crisis”, because they have “more capital and liquidity”. However, soon after, he said “don’t be blindsided” by the economic downturn.Creditworthiness of customers will be affected“of banking and this will force institutions to increase their provisions,” he warned.

The ECB tries to hold prices

Even the vice-chairman of the ECB has confirmed inflation This is affecting the disposable income and investment of households and firms, and this context is further uncertain due to the consequences of the war in Ukraine. Along these lines, he noted that the European economy is thus experiencing “a year and a half with negative surprises” and highlighted that. The ECB is trying to keep it at 2%. “The longer the period of high inflation, the more likely it is to have a second-round effect,” he warned, pointing to the problem of raising wages at the same level as inflation and leading to new price increases. .

He said that, in this regard, the ECB is “in the process of normalizing monetary policy” and actions in the immediate future It will depend on the evolution of macroeconomic data. From the outset, he made it clear that there would be a discussion on what to do with the ECB’s balance sheet in December, and he advocated taking any decision in this area with caution.

“The balance sheet decision should help Reducing excess liquidity in the market“, he commented and added: “This process of reducing the balance should be done very carefully, because in addition We don’t have much experience with it“.” Our aim is to monitor inflation expectations and signal that another round of results is undesirable,” he added.

Source: lainformacion.com

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