Avoiding any permanent damage from COVID-19

Summary

Tha main challenge for the Spanish economy after COVID-19 is to implement appropriate measures to mitigate any permanent damage on the economy, and to ensure that we do not see an increase in structural and long-term unemployment rates, a permanent fall in incomes and an increase in inequality.

Key points

• Key points:
• To do this, it is essential to work on several fronts. Firstly, introducing safe and efficient policies that leads the economy to the edge of possibilities for maximizing health security and economic activity.
• Secondly, demand and income policies are not enough to get back up to pre-crisis levels of activity. COVID-19 and the threat of similar risks in the future are a supply shock.
• Thirdly, international cooperation, aid and coordination, especially within the EU through a recovery fund and common policies, are an absolute necessity.

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