Economic Recovery and Construction Industry Jeopordized by lack of Government

Economic Recovery and Construction Industry Jeopordized by lack of GovernmentIn the midst of a political mess, current Caretaker Prime Minister Mariano Rajoy reemphasided the severirty of the consequences that will result if Spain cannot form a government in the near future. The lack of government will continue to impede the ability of the country to repair its economy as the Socialists will not back down their call for a grand coalition to rule the country.

Rajoy stated that “Spain needs a government to deal with the economic situation,” in a conference last week in the Parliament building in Madrid following his meeting with Socialist leader Pedro Sanchez. The desperate political figurehead made it clear that “We can’t afford to throw overboard all the efforts made in recent years.”

The country’s lack of government is as a result of a failed election in December whereby there was no defined winner. The same results were produced in. There was not enough support for a majority. There was enough enough support for a majority to pass a budget and spending plan to help try and reduce the budget deficit. The ministry of labour has indicated that the unemployment rate has decreased significantly, to the lowest level since 2009. The momentum of economic recovery needs to be maintained.

Much of this momentum can be attributed to Rajoy, who has been ruling in caretaker mode since October last year when he called the first inconclusive round of elections. The result of this vote was the most fragmented government in the country’s current democratic era.

The caretaker administration last week trimmed his optimistic growth forecast from 2.4 to 2.3 percent as he indicated a decrease in the investment in construction and equipment due to this investment having less value than originally anticipated. This is a touchy subject as Spain’s architecture is crucial to tourist and to its economic stability and that construction is a crucial element of expansion, development and growth as a nation.