Economic medicine by 2024

In a previous article I reviewed the economic stability that Navarre faces in relevant areas such as competitiveness, unemployment, investment attraction… I said that the economic policy of the current regional government seems to be the same as that of the previous legislature, So that we can’t expect very different results.
This negative trend occurs invisibly to society and must be reversed before it is too late. At Institution Futuro we always rely on data to be able to identify these trends and propose proposals that we believe will help our land to once again be included among the best regions of Europe.

Our first proposal is to encourage business dynamism and sophistication, remembering that private business is the main generator of wealth and employment. The priority objective should be to regain full employment; Quality private employment. To do this, they must be supported so that they can be more innovative, open to the outside and seek their own efficient shape. This will be a way for them to be more competitive. This will ensure maintenance and creation of new jobs. It is essential to understand and know that it is more necessary than ever to help them with a public-private collaboration approach. In recent years, much of the growth in employment has been through public employment, resulting in more people making a living in the public sector than in the private sector; This is not sustainable.

The second proposal is that the autonomy that Navarra enjoys should be used to carry out comprehensive tax reform. I don’t understand how we, both companies, self-employed workers, entrepreneurs and citizens, are paying higher taxes than other Spanish regions. Reform the tax system so that it is balanced and competitive and improve its collection capacity and efficiency. Its objective should be to increase revenue without creating new taxes or increasing existing taxes, but by increasing the tax base. Similarly, a decisive commitment to the fight against fraud is recommended.

The third proposal is for infrastructure development. There are several pending projects in Navarra that have been stalled over the last decade. One of them, high speed train (TAV), is a key infrastructure to get us on the map and it is up to the state to build and pay for it. It is up to us to demand its attainment. Another project, the completion of the expansion of the first phase and the completion of the second along the irrigation area of ​​the Canal de Navarra. Delaying this represents an understandable loss of opportunity, all the more so given the results achieved in the earlier phase. Pamplona’s connection by highway with Madrid, so that it is not the only provincial capital that does not have it. And given the lack of electrical energy transmission network in Navarra, the construction of a new 400 kV network is necessary. On the other hand, although the infrastructure is available, there is a lack of better air connections from Pamplona to various national and foreign destinations.
The fourth proposal relates to education and training, which should be focused on future employability, taking into account the needs of companies and society, to facilitate youth inclusion in work. Knowledge of new digital technologies and continuous training should be promoted in companies to ensure updation of active workers. Dual FP should be promoted by involving the company as much as possible in setting up educational materials. It is beyond comprehension that we have 30,000 unemployed and at the same time, companies are having trouble recruiting the profiles they need.

I will conclude with a fifth proposal which is oriented towards public spending in Navarra. In recent years we have been spending more and more without improving the quality of services. This trend must be broken by prioritizing budget adjustment and reducing public debt. There needs to be a comprehensive review of the budget, starting with personnel costs, which are skyrocketing. Navarra Public Administration must be a model of excellence, making the most of its resources to improve and make the service provided to taxpayers as efficient as possible. Tools should be introduced that evaluate individual efficiency and the various services offered, as well as improve transparency and accountability.

Digitalization and excellent use of Artificial Intelligence, R&D&I and energy and environmental transformation will accelerate the expected results. The Next Generation European Fund with Pertes deserves special mention, which can help the economic transition; There is still a lot of improvement to be done in its management.

Given the small size of our land, removing bureaucratic hurdles and establishing a clear and stable regulatory framework without changing the rules of the game mid-match will also guarantee the region will be an attractive region for the community. , Why don’t we propose that Navarra be the region where it takes the shortest time to form a company? We have fiscal and financial autonomy which, if properly oriented, can help us achieve this.

And as I always defend: All this can only be done with the political consent of the main parliamentary forces. Reversing the negative trend in Navarra will take time, perhaps more than one term, but this will be the only way to achieve it.

Jose Maria Aracama Yoldi. President of the Institution Futuro think tank.

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