From macroeconomics to national challenges
The GDP of the Catalan and Spanish economies has been growing at double the rates of the major European economies for several years, unemployment is falling, and inflation is trending toward the 2% target. Clearly, the macroeconomic figures paint a picture of a thriving economy. However, there is a growing perception among citizens and businesses that things aren't as good as they seem on the ground; rather, there's a general feeling that economic and social problems are piling up and that, despite the positive figures, things aren't quite working. More importantly, there's a sense that action is needed to prevent things from getting worse.
Is this a subjective perception with little basis, or are there compelling reasons to justify it? Why have we reached this point, and what can be done? Perhaps it's the very momentum of growth that, due to a lack of foresight and long-term planning, has overwhelmed the social and economic foundation upon which it rests.
This has spiraled out of control in two dimensions: from basic infrastructure (transport, energy, water, and urban, including housing availability) to human and material resources (a lack of qualified personnel, absenteeism as a serious symptom, the absence of a genuine immigration policy and a critical education system, underfunding of the Catalan government, a lack of effectiveness and efficiency in administration, and entrenched poverty rates well above the European average). Catalonia's population has increased by 700,000 people in the last decade, thanks to immigrants attracted by an expanding economy and a production model that relies heavily on low- and medium-skilled labor.
The demand for electricity has also increased, as has the pressure on the electrical grid to meet unstoppable technological change: from vehicle charging points to adapting the electrical system to a greater share of renewable energy. In both of these aspects, our country has clearly fallen behind.
The recent crisis in the railway system, and particularly in the commuter rail network, which had been brewing for some time, has highlighted the lack of investment by those responsible for ensuring adequate maintenance of the existing network and capacity expansion in line with the country's growth. These dysfunctions also affect road transport, compounded by governance deficits in key infrastructure projects. Therefore, the urgent implementation of the State-Generalitat investment consortium is crucial. This consortium should guarantee the full execution of projects through local management. Without an efficient transport network adapted to the new demographic landscape, the housing problem will be insurmountable and will gradually worsen. Without urban planning and regulations that encourage, rather than hinder, real estate development on buildable land, a housing shortage is all but inevitable. On the other hand, climate change, which has affected us with intense rainfall in recent months, should not make us forget that periods of drought will return, and that these can only be faced with foresight, planning, and the effective implementation of planned investments.
The rapid economic growth of recent years has also strained the availability of personnel with the necessary skills and qualifications in many sectors. The shortcomings of vocational and university training systems, which combine to reconcile the phenomenon of overqualification with an unemployment rate far exceeding the European average, also reflect poor planning and even worse execution. In this context, the absenteeism rate has skyrocketed to levels more than double the European average and seriously harms the competitiveness of our productive sector. Absenteeism must be seen as a problem for all of society, not just as a business problem that clearly affects the competitiveness of our companies and ultimately has a direct impact on our welfare model.
The recent protests by education and healthcare professionals have bitterly highlighted the resource problems plaguing the Catalan public sector, a result, in part, of chronic underfunding that we hope is now on the path to resolution. This stagnation dates back to 2014, the year in which the territorial financing model should have been reformed. The proposed new financing model is a step forward that would represent a significant increase for the Generalitat (Government of Catalonia) and respects the principle of ordinality in the case of Catalonia.
Recently, a group of representative entities of Catalan civil society, including the chambers of commerce, have advocated using the parliamentary process to introduce significant improvements to the proposed financing reform, such as taking into account the differences in the cost of living between regions and their tax rates.
Finally, the ongoing challenge of simplifying administrative procedures and professionalizing and increasing the efficiency of the administration means that the spillover effect is particularly acute in the public sector. Since solving the remaining problems, from housing to transportation, requires an effective and efficient public administration, and its reform is the priority that has always been postponed, it is urgent to achieve, without further delay, tangible and significant progress in the public sector reform process that the Government has already begun.
In short: the perception that things are not going as well as they seem in the macroeconomic sphere is well-founded, but diffuse, because it stems from a multitude of factors that are not related at first glance.
When investments are not executed properly, when administrative procedures and public resources are not aligned with needs, and when there has been a lack of will to reach broad consensus to address the country's main challenges, we are not facing a collection of isolated problems. It is a systemic problem, with economic growth exceeding the limits of the infrastructure and the human and material resources that should support it.
We have a solid foundation. If we work together, we will succeed. This country has always done so.
It is the responsibility of civil society and the entities that represent it, such as chambers of commerce, to contribute to the common good with a critical yet constructive vision, sharing with public authorities and society as a whole the responsibility of contributing proposals and suggesting solutions.
Although the primary responsibility lies with the government, the chambers of commerce are at the service of the country, and we call upon all stakeholders and political parties to seek common ground on the key national issues that affect citizens and businesses. We must move from skepticism to action. We cannot wait any longer.