EU Credits: Spain and Portugal choose different approaches

Spain and Portugal have very different approaches to the task of economic recovery from the crown of the crisis: while Madrid intends to boost the economy through the use of funds from the EU Recovery Fund and the growth of public debt, Lisbon has decided not to take loans from the European Union. As can be seen from publications in the press, observers both there and see the reason for the authorities’ actions — but do not hide some skepticism.

Think about future generations

La Vanguardia newspaper writes that the funds received by the country from the European Economic Recovery Fund should be spent wisely:

“The decision taken by the ruling cabinet to increase public spending is historic…. Such a high public debt, through which the government hopes to cope with the crisis and restore the economy, will hit the pocket of future generations. This task requires the present generation a responsible approach in terms of what exactly these funds will be used for. We need to reform production and make it more efficient; we also need to create new jobs and structures to ensure our future prosperity.

Can the EU be trusted?

The Portuguese government intends to use only the subsidies from the Recovery Fund to withdraw its loans. Visao welcomes this strategy, although it does raise concerns about whether these funds will be sufficient — and whether they will be available at all:

“There is no point in increasing debt if such a monetary gift can be received. Yes, the grants are smaller in volume and designed for a shorter period of time, but to start with them is the right decision. The only question is whether this money is enough and whether it will reach the recipient. Is it possible to give an answer to this question now? The EU is a country made up of individual states. It is a bureaucracy multiplied by 27, which usually lives in isolation from reality and is run by ‘leaders’ who have not been elected — and who pay no attention to their electorate.

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