On 10 March 2011, the Rafael del Pino Foundation organised the Round Table entitled "How to ensure a process of competitive disinflation in Spain" with the aim of analysing the possible ways to contribute to improving the competitiveness of the Spanish economy at a time like the present, characterised by the emergence of inflationary pressures in a context of weak economic growth.
The debate included the participation of David Taguas, President of the Spanish Association of Construction Companies (SEOPAN); Rafael Doménech, Chief Economist for Spain and Europe at BBVA Research; and Amadeo Petitbò, Professor of Applied Economics at the Complutense University of Madrid.
David Taguas stated: "The policy of disinflation is more necessary now than ever. We must remember that, with monetary union, it is now impossible to resort to competitive devaluations, something we had become accustomed to in periods of loss of competitiveness, such as in the early 1980s or 1990s, or in the last recession. Resorting to devaluation, as on those occasions, is now unfeasible. Today, the only possible way forward is to use common sense and the efforts of all economic and social agents to bring about an income pact that will lead us to a situation in which Spain can recover part of its lost competitiveness. This is essential if we are to have better growth prospects and be able to get out of the current situation, which is quite critical". The possibility of leaving the euro to benefit from a possible competitive devaluation has been rejected by David Taguas: "The break-up of the euro is a scenario that must be ruled out. The Spanish economy has undoubtedly obtained enormous benefits from its membership of the European monetary area and leaving the euro would be a terrible scenario. We must rule out this scenario and do our homework so that it cannot happen".
