Governor of the Bank of Spain
Updated on Tuesday, 19 October 2021 – 14:29
The governor warns of the country’s “delay” in rigor and calls for more independent authorities
The Governor of the Bank of Spain, Pablo Hernndez de Cos. Emilio NaranjoEFE
The Governor of the Bank of Spain, Pablo Hernndez de Cos, criticizes that in the country ideological decisions are made without evaluating their costs and fears for European funds. In a speech when collecting the Grand Cross for Merit in the Economic Service 2021 of the General Council of Economists, the governor has described serious deficiencies in management in the country: “Spain is lagging behind other countries in our environment. And It is not for lack of technical knowledge available, but, in my opinion, due to the existing limitations in the current administrative, political and social ecosystem, which does not sufficiently promote the insertion of the evaluation process within the cycle of design and review of public policy programs “.
Therefore, he sees it necessary that “no matter how firm the ideological postulates about the means to be used, economic policy-makers are open to being questioned by the results of rigorous and independent evaluations. “The governor has not mentioned any decision in particular, but has criticized in the past that the minimum wage or the salary of the civil servants is raised without a previous evaluation of the consequences for the economy.
It does not refer only to the central government, but to all administrations and even areas of the private sector. “There are still important technical shortcomings in a large part of the Spanish administrative apparatus for the design of public programs that incorporate in this design the eventual ex ante evaluation or, at least, the subsequent evaluation. These deficiencies limit not only the capacity of the Public Administration to carry out rigorous evaluations, but also the full use of the results of external evaluations. “
This problem is made more serious by the challenge of the up to 140,000 million that Spain expects to receive from the new European funds. The governor sees “danger” in which projects are successful due to the lack of prior and subsequent review mechanisms. “The constant evaluation of the projects financed with these funds is the most effective response (…) and minimizes the danger of continuing to contribute resources to projects that are attractive a priori, but that do not yield the expected results.. Failing can sometimes be part of long-term success; persevering in error never is. Spain and Europe need the success of the Next Generation EU program, “he affirmed. He alludes to the danger that, as there are not sufficient rigorous controls, the error of a project financed by the EU will not be identified in time.
Hernández de Cos also insists that there can no longer be a divorce between the government and the opposition over the funds. “A broad agreement on their destiny, based on constant and rigorous evaluation, would offer the best chances of reaching a more prosperous country, one that provides more and better opportunities for all,” he stressed.
He dedicates a good part of the speech to vindicate the technical work and the independence of organizations such as the Bank of Spain in the face of political ideology. “That independence allows to achieve a benefit for society greater than that which will be achieved if the powers were assumed directly by the political authority, “he assures, recalling that the Government would not have a long-term vision with inflation, for example.
For this, it considers essential that there are more independent organizations such as the Bank of Spain. “Create without long-term hiring plans [de personal tcnico y profesional adecuado] it does not work “, in clear allusion to the fiasco of the defunct State Agency for the Evaluation of Public Policies and the Quality of Services (AEVAL) and to the lack of autonomy of management of organisms such as the National Commission of Markets and Competition.
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