Spanish president says financial reform 'inevitable' and announces new guarantees for SMEs and freelancers

According to Spanish president Pedro Sánchez, and as stated on Thursday during an interview with 'La Sexta', some form of financial reform is "inevitable" given the negative economic impact the health crisis has had.

These reforms, Sánchez claims, will have to be carried out keeping in mind matters of "social justice" to avoid further weakening the welfare state: tax increases for big "corporations" rather than "small and medium businesses."

While the Spanish president admitted that reducing public debt and deficit is now a priority, he also announced a new line of guarantees for small-and-medium-sized businesses and freelance workers worth 50 billion euros.

During the interview, Sánchez described how the pandemic forced many of the government's plans "out the window" as their goal was to prevent anyone from falling behind, although he did say that now some public policies will have to be revised as "some will no longer be needed."

The Spanish president also stressed the need for a joint EU-wide response to the economic crisis and that said an agreement on European funds should be reached this month.

Economic recovery agreement

The Spanish government is set to sign an agreement with unions and employers' organizations at a ceremony at La Moncloa presidential palace on Friday with the aim of promoting "job creation and reactivating the economy."

The document, according to union sources, will include a number of "commitments, proposals and matters to be considered."