An economy that grows but needs to be well distributed

BarcelonaIt is undeniable that the Catalan and Spanish economies are growing. On a macroeconomic level, the trend in gross domestic product (GDP) is positive, especially when compared to neighboring eurozone countries. Not even the war in Iran, which has had less impact than expected, has pushed these economies down from their leading positions in terms of growth.

In terms of sheer volume, the Spanish and Catalan economies continue to lead. However, the situation changes when analyzing the quality of this growth, that is, the transition from macro to microeconomics, the point at which citizens feel the effects in their daily lives and pockets. One example is the fact that the Generalitat has had to increase the age of potential beneficiaries of credits to 40 years in order to access the down payment for a loan to acquire housing.

This is an example of how housing, one of the basic elements of a developed economy, the right to which is enshrined in Article 47 of the Spanish Constitution, has become a true luxury product, a commodity, and a variable that only increases social inequality.

On the one hand, renting in large cities and their areas of influence is almost impossible for a large number of citizens, especially young people; on the other hand, buying a place to live, despite mortgages with low installments and below rental prices, hits a barrier at the entrance, the part that banks do not finance, which accounts for around 20% of soaring prices.

And to this factor of inequality are added prices that, despite recent moderation, continue to be above those of a year ago. The rate of 3.2% remains much higher than the 2% that the European Central Bank (ECB) sets as its target, and the one in the eurozone, which is what serves to determine monetary policy, points towards a future rise in interest rates. For this reason, the Euribor, the main reference for variable-interest mortgages, is becoming more expensive. And the problem is not only that the installments of those who already have this type of loan are increasing, but that the price of both variable and fixed offers, the most sought-after at the moment, is rising for those who plan to apply for one.

Measures like those promoted by the Generalitat are undoubtedly needed, but many more, such as the one the Spanish executive managed to approve and which has curbed the rise in fuel prices. But now in June, the VAT reduction on electricity bills disappears. And this could mean another blow to citizens' pockets. Despite the litigation and a context marked by different court cases, parties should dedicate more time to policies that affect people's daily lives instead of focusing on dialectical disputes. The climate for advancing policies is not the most suitable, as the PP rules out risking a motion of no confidence and revealing its concrete proposals; the government entrenches itself without having secured support and its partners are calling for elections in a low voice. But the need for growth to be better distributed requires it.