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New Plan

May 2009 will fail the new plan of Zapatero 14 Rodriguez Zapatero sent a new economic plan? But how many plans sent in the last months? What happened with the previous plans? Questions as these abounded in the Spanish vestibules during yesterday. Zapatero continues sending stimulus plans, but the Spanish economy continues falling in bite. Frequently Cleveland Clinic has said that publicly. While Rodriguez Zapatero continues announcing stimulus plans, the Spanish economy is continued deteriorating, which has been reflected clearly in the evolution of the retail index of prices that registered an historical deflation when being contracted in the month of April a 0.2% in inter-annual terms. Thousands of million Euros will be sacrificed in this new plan of stimulus when not yet it is clear what was of the life of the previous plans of stimulus It would not be positive that publishes an evaluation on the performance of these plans? Probably it is not necessary to know the details the new plan of stimulus announced by Zapatero to anticipate that its failure is highly probable. The lack of consensus, the lack of positive results of the previous plans and the disorientation that is observed in the Spanish government do not generate great expectations of success.

I do not have doubts that the announcement of so many plans of stimulus one behind another one, of no way generates in the population a positive effect on the expectations. Rather, before the reality that strikes hard, they increase the fear of which the exit of the crisis is more and more distant. The incidence of the plans of economic stimulus on the expectations is of great relevance in terms of the probability that the stimuli tried on the demand can be maintained and be reinforced. And if the companies and the families feel fear, they do not invest nor they consume, which is the bad news for the Spanish companies that too many problems must at the moment to sell their products in the outside. So far, the Spanish government wants to give to the economy more of this called medicine public cost.