Reforms imposed by Covid-19
The threat of the coronavirus continues in the summer and affects the economy and employment. Reforms such as those adopted in Morocco are essential. The summer heat is not acting as some experts initially thought it might attack the coronavirus. The outbreaks in many countries continue to wreak havoc, as is the case in the United States, Mexico, Brazil and all those whose leaders have underestimated the threat of the pandemic and have taken too long to admit the absolute necessity of strictly applying elementary safety measures such as wearing a mask, respecting safety distances and washing and disinfecting hands as often as necessary, the more the better after being in a different space.
All the more so if it is a public place with a large influx of people. Relaxation is causing upheavals in several countries, including some Spanish autonomous communities that have been marginalized by the authorities of several European countries that have banned their compatriots from travelling to Catalonia, Aragon or Navarre. The direct consequence of these resurgences is the paralysis of economic recovery and the loss of jobs.
The tourism sector, which is vital for employment in Spain, is suffering from numerous cancellations or is not registering the reservations that had been planned after checking the acceptable rate that was taking place after the state of alarm was lifted. The data on the loss of 18.5% of GDP in the second quarter and the unemployment figures with more than a million fewer people employed are serious enough to stop populist and electioneering approaches and face up to the reforms that the Spanish economy needs and direct aid for small and medium-sized enterprises and the self-employed to avoid a closure that usually becomes permanent.
The European Union has demanded that its 750 billion euro Reconstruction Plan be directly conditioned by specific plans for spending the funds dedicated to each country and to fundamental reforms in key aspects such as labor, pensions, public spending, etc. Other neighboring countries have also been forced to accelerate pending reforms as much as possible.
King Mohammed VI announced in his Throne Day speech an investment of 12.8 billion dollars, the equivalent of 11% of his GDP, to relaunch the economic recovery and demanded greater efforts from the Government and economic and social actors to achieve greater strength and competitiveness.
These resources should finance social support measures, purchase of medical equipment, generalized social security and mandatory health insurance, family allowances, as well as retirement coverage and compensation for job loss, support for small and medium-sized enterprises and public sector reform.