Ontiveros: "not me it shocked the adjustment plan, but it can not be only by way of spending: must grow"

Source: 7th World Wine Forum13/05/2010

May 13, 2010

Emilio Ontiveros, President of international financial analysts (AFI) said yesterday about the adjustment Plan announced by the Prime Minister that "no me escandalizo, but I also note that the adjustment can be not done only by way of spending." "It is essential that the economy is growing."

Ontiveros, who made this Declaration in the framework of the VII Forum World wine held in Logroño, highlighted with regard to the motivations for this adjustment Plan that "is a fact that the Spanish authorities came from the meeting of the weekend with the purpose of carrying out more adjustment in financing to the" Initially it had determined. "And their ability to manoeuvre was limited: have been able to tweak much in current expenditure and some investment".

The Professor of Business Administration pointed out that "it is evidence that we had to review the costs, but beware the border between austerity and anorexia". And, regarding the deficit, said that "it is important to comply with European obligations of public deficit, but perhaps it could come into the extension of the period to reduce it".

Emilio Ontiveros. Author: Riojapress.

Wine and business challenges after the crisis

The intervention of Emilio Ontiveros has opened the papers of the 7th World Wine Forum, which will be analysed until Friday the current challenges of the wine industry, motivated both by the economic situation in general and by the particularities of the sector itself.

With regard to the wine industry, he stressed that the DOC Rioja has "a superior good;" "they have to do is strengthen the intangible product, look for the differentiation of business, try to offer something different, but always from the base of excellent quality".

These determinations are joined in a broader framework which was the subject of his opening speech: "Business challenges after the crisis". Ontiveros stated "never we had experienced a crisis of the severity of this" and appreciated the importance of the decisions taken at the meeting of Finance Ministers of the EU of the past weekend.

"Today there are no local fire - noted Ontiveros-." The agreement to set up a Fund of financial stabilization for the refinancing of the debt of the economies of the EU, the support of the IMF in the face of that refinancing is good and is good also the attitude of the ECB of being willing to buy debt is goodas they had already done before the United States Federal Reserve or the Bank of England. "If the EU had fragmented by this situation, it would have been bad for everyone".

As for the situation in Spain, Ontiveros noted: "No vale do not recognize the reality because it is the first step for mistakes in therapies or delay in the adoption of the same." It is a stupid politicians and economists we enzarcemos to see if a timely one-tenth of GDP rise in a quarter is to begin to emerge from the crisis or not. The only valid Green shoot appears when he is created more jobs of which is destroyed; "and this is not just around the corner."

Potential trends after the crisis

The Professor of business administration has pointed to some trends that could mark the start of the crisis. Among them has pointed out that "the recovery will be a fact, but slow in terms of employment." And, in addition, it will be not led engines of yesteryear, but the emerging economies such as Brazil, India, Russia and China. "Blessed through the companies that took up the challenge of internationalization in some of these countries years ago".

Ontiveros stressed also that "there is an excess of installed capacity in almost all sectors." Too many companies. "In his day, all are thinking that the economy would grow at a pace and it turns out that the pace is another". As a result, he pointed to the need in many cases of "restructuring business, either by means of weight loss organizations or for mergers and agreements." "The business minifundismo is not the answer to a global environment and to a reduced demand".

Other trends which can make the economy in macro terms for the coming years, according to Ontiveros, are the relatively high unemployment, inflation and interest rates contained and moderate growth of credit to businesses.

President FER, Ontiveros and President Rioja.

In conclusion, he stated that "crisis means opportunity." When one checks the history of the great business successes, it notes that the highlights of business growth left decisions in times of crisis.

"The World Wine Forum, organized every two years since 1998 by the Ministry of Agriculture of the Government of La Rioja and by the Federation of businessmen in this autonomous community, is a scientific meeting that analyses the sector from all points of view in order to increase their competitiveness."