“Okay, Americans are fast,” replied a friend, explaining how President Trump in 2020, and Joe Biden in 2021, mobilized $9 trillion to revitalize the economy and employment, and at breakneck speed, delivered money to families and small and medium businesses. The response was immediate: between May and December 2020, 8.5 million jobs were created, and in 2021, there are already three million more. The unemployment rate, which amounted to 15.7% in May last year, today is 5.8%, and it is expected that in 2022, the United States will return to full employment, as in February 2020, with Trump.
Siddiqui’s answer, an experienced economist, shows an attitude and behavior typical of American psychology: It is a process; They are consumers and give the economy the utmost importance, like the great majority are patriotism and religion. The reason Presidents Trump and Biden provide money directly to citizens’ bank accounts is because America’s economic experience in the last 100 years says that when people have money in their pockets, It takes seconds to spend: Online, on Amazon, on Shopify, at the mall, at the mall, at Macy’s, Nordstrom or Saks; At Walmart, Tesco, Cost-Co, Best-Buy, Hèrmes, Dior, Chanel, or at the corner store: consumption drives production and the virtuous circle of the economy is created. And faster is better.
On the other hand, things are very different in Europe, and without wanting to go into details, we have been waiting for a year and a half for the “European Marshall Plan”. They had to reach us 140 thousand million euros for digitization and energy transition, but it seems that this year we will have to settle for 9000, if they arrive (for example, the media).
While Europe is going at its own pace, the economy continues to stagnate and the unemployment rate is twice that of the US, the US is sailing at full speed. This year, at least, it will grow by 7% in GDP, with the restoration of pre-pandemic levels, this year 2021. Spain, in the best case, will do the same in the second half of 2023.
It’s time to take a look at America. I mean Spain. The Biden administration’s public investment extends beyond the borders of the United States. We are talking about $6 trillion or six times the Spanish GDP. And there are areas in which Spanish companies can contribute and acquire as well. There are sectors of activity in which stimulus programs seem designed for Spanish companies. For example, strengthening physical infrastructure (bridges, roads, etc.), where the government invests $1.7 trillion and Spanish companies such as Ferrovial, Abertis, ACS, Sacyr, FCC, among others, already have contracts and many more. You have. It’s a golden opportunity.
Similarly, telecommunications infrastructures, where America has a large player, American Tower and the American legislature require more competition. Only a Spanish multinational can do this, Cellnex Telecom, a European leader in managing wireless infrastructures and in ESG (Caring for the Environment, Social Responsibility and Good Corporate Governance) practices, into which large investors have been relocating for years. United States of America
The United States is the land of opportunity for Spanish companies. And the star sector is energy. The government approved the Energy Transition and Climate Change Program “in the amount of $1.1 trillion”. The goal is to replace fossil fuels such as oil for renewable fuels. Four Spanish companies are well positioned to do business there: Iberdrola, Naturgy, Acciona Energía and Repsol. Size matters, as do innovative technologies and the power needed to handle large projects that last for years.
These Spanish energy companies did not start from scratch in the United States, as they have gained a direct presence there in recent years. Obviously, experience and local roots are very important. Americans appreciate him very much. Such as the strong ties with Latin America and Brazil, which Iberdrola, Naturgy, Accuna and Repsol have linked for decades.
It is a matter of seizing the opportunity: when the conquistadors searched for the golden city of El Dorado, they went foolishly and madly, in the sixteenth century. Obviously in 2021, El Dorado will be several energy conversion programs – already given a budget – that our companies can access through public tender.
is ‘re the americas’, But not to overpower or wander around in search of what will happen. North American management projects, both in construction and digitization, as in renewable energies, will be prepared sooner rather than later.
It is time that we Spaniards also look to America, and the United States, as the land of opportunity. To do business and succeed.
Jorge Diaz Cardel is the Managing Partner of Advice Strategic Consultants. He has worked for more than 30 years in multinational companies in North America and has published 25 books. He is a biographer of Barack Obama and Donald Trump. He has just published his 25th work: “The Biden-Harris New Deal. Economic Policy for the Twenty-first Century and Leadership for the USA.”