This multifaceted menorquin always advances me headlines that will be published much later. For weeks now he told me about the third cross in a sovereignty consultation tolerated by Madrid. And it is that three crosses give more right to decide than two. In order to give content to the third cross, it is commented in the huddle that Euskadi would see its fiscal advantage reduced and that this margin could end up benefiting Catalonia and its new Tax Agency. Apaños that would be specified by a financing consortium-they take it all-with a confusing enough outcome so that everyone can show some profit and no one feels loser. Pareto himself would have blessed him.
This is a country of sacred cows. And they do not usually move for the outsiders to pass. Another drawback is that I did not coincide in private schools with any elite. The advantage is that, for that very reason, I was not labeled as a member of any political family and I am supposed to be independent.
And you were a nerd.
I was an extraordinary prize in Law and Economics and I got my doctorate in York in Health Economics, from whose world association I finish the presidential mandate in December. We have founded several centers and masters in the Pompeu Fabra, where I am a professor, and I am an advisor for Europe of the WHO.
How did a peripheral get in among the five directors of the Bank of Spain?
Per peripheral share precisely, which is not written anywhere, but it is.
And your responsibility in the decisions of the bank has been central or peripheral?
Recapitulemos: before the crisis, the Bank of Spain was admired in the world, for example, by its anti-cyclical provisions.
Zapatero boasted of central bank.
But it is that ours is not being a financial crisis, but economic. In the United States, the financial crash drags the economy, but here is the collapse of the economic model that drags all the rest.
There have been times when the entire state seemed to collapse at once.
Because when other countries start to come out, we fall again. And that second fall is no longer resisted by anyone. After the resignation of Solbes, our risk alarms, which was already a systemic risk …
And Spain could end the euro …
… they are horizontal and political: Campa, Salgado, Sebastián, Zapatero … Fortunately, those alarms end up becoming vertical and we no longer go through the Moncloa, but instead go from the Bank of Spain to the ECB.
And what does the ECB say?
Ours was a crisis of boxes, not banks, detonated by the outbreak of the bubble. And we managed to agree with Frankfurt an exit in which the depositors were protected; not the shareholders. And also to the taxpayer. Because it has avoided the hose that some wanted; that is, cover the holes in the boxes directly with public money that we would have put all.
They give us nothing: they lend it to us.
Under very favorable conditions: the loan is made at 0.75 of interest -under inflation- and 12 and 14 years. Our European citizens have come to the rescue of all the Spanish follies of the bubble.
Why is it so difficult to avoid them?
Because there is so much liquidity, so much money in search of profitability, that the interest paid for it is minimal. That’s why the pressure to speculate with financial engineering is enormous. And we all want the maximum for our savings. From a fund of Bavarian pensioners to yourself.
Will we have learned something?
A blows, yes, of course. I think we have learned that we should not rely on financial intermediaries who do not risk anything in an operation they recommend.
But they always charge commissions.
In summary, I believe that when the Bank of Spain’s minutes are made public, our management will be revalued. The system has been rebalanced and the clean-up of the boxes has been done in a short time and with less than half of the 100,000 million ransom.
Its mandate is to control inflation. But, like all central banks, it uses the Taylor rule, and the result is that, as long as inflation stays below two percent, the ECB will not raise rates.
So, if I see higher prices, I prepare for my mortgage to go up immediately.
And with the ECB focused on curbing inflation, the other central banks must focus on avoiding systemic risk. For that reason, I hope that in 2017 my term ends, leaving a more solid system than what we found and with the European banking union already very advanced …
Will I have health when I retire
Health spending will increase. What will not increase is the ability to finance it with taxes. Because, as a society prospers, it considers more benefits to be of primary necessity: for example, the second medical opinion or drugs on demand.
What health is the essential
We would never agree on what benefits are, but we could agree to the procedure to decide what they are and those financed with taxes. Thus, the politician who changes them would be forced to explain why.