Spanish investments in the country are distributed as follows: 65.6% in the tourism sector, 18.2% in real estate, 15.5% in energy, and 0.8% in the free trade zone sector.
Taken from Listín Diario
SANTO DOMINGO. - Economic, social and political stability and the ample flow of liquidity in European countries like Spain can become another opportunity to attract new investments to the country.
Cristóbal Montoro, former Minister of Finance and Economy, and Member of Parliament for Spain and the European Community, believes that it is time to take advantage of the liquidity in the European economy and the fact that this is the first time the world is not affected by economic imbalances.
“We are in the recovery phase even though the pandemic is not over,” said the Spanish economist in an interview with Listín Diario, where he expressed his hope that science will provide new vaccines and treatments for the health crisis affecting the world.
He maintained that Spain has investments worldwide, in Europe and Latin America, as well as important ties that it did not have 25 years ago and that must be valued. Montoro explained that it is important to have the capacity to generate confidence, legal stability for investment, and improved public services, as points of reference in this health crisis, which, in his opinion, the Dominican Republic government is already addressing.
There is stability, openness, and conditions for the wealth of the independent business sector and from outside to be harnessed.
He emphasized that Spain has the financing capacity and the Dominican Republic has the opportunity to attract those investments. Spain's projections are below expectations, but it is recovering and has financing reserves; "we just have to wait for the floodgates to open," he said.
Minister Montoro is visiting the country as part of the work carried out by the Center for Public Policy Analysis to promote the exchange of ideas and take advantage of the experiences of personalities such as the economist.
Economic structure
Former Minister Montoro explained the challenge posed by Spain being so severely affected by the pandemic, attributing it to its vulnerable economic structure, with a large number of self-employed individuals and numerous SMEs across all sectors. Of Spain's 47 million inhabitants, 3.2 million are self-employed and work in SMEs, and the service sector, including tourism, transportation, and leisure and hospitality, is of great importance. In 2019, Spain received over 84 million tourists, who made a significant contribution to employment and the economy, he noted.
He emphasized that the key difference between this crisis and others is that institutions have reacted effectively, and the measures have proven highly effective with increased liquidity. He noted the substantial intervention by central banks and stressed that this liquidity must be channeled toward investments and new opportunities in sectors with potential for growth within countries.
“The Dominican Republic has a high potential for attracting that liquidity, that financing,” said the Spanish economist and politician, who believes that the economy can and should grow by creating jobs and achieving a distribution of economic growth so that it reaches the people.
The Spanish expert highlighted the economic relations and ties between Spain and the Dominican Republic, nations that share a common language, have similar cultures, and share a similar worldview in relation to other European nations.
Profile
Cristóbal Montoro is a Spanish politician born in Jaén. He holds a doctorate in Economics. He was elected to Parliament in 1993 representing Madrid and in 1999 joined the Executive Committee of the People's Party. He served as Secretary of State for the Economy (1996-2000) in the government of Rodrigo Rato. He was Minister of Finance in the government of José María Aznar (from 2000 to 2004), during Spain's entry into the Eurozone in 1999, and was the author of economic liberalization plans.
In 2004 he became a Member of the European Parliament. In 2008 he was again elected to the Spanish Parliament representing Madrid. In 2011 he served as Minister of Finance and Public Administration in Mariano Rajoy's government. From 2016 to 2018 he held the position of Minister of Finance and Public Administration.
It suggests taking advantage of the country's geographical position
The Dominican Republic has an important geographical position in the Caribbean, which should be taken advantage of, according to Spanish economist and politician Cristóbal Montoro, who also highlighted the importance of promoting Public-Private Partnerships.
Montoro is visiting the country and, although he has come before, he values the growth and stability that this economy exhibits.
Speaking slowly and precisely, the doctor of economics and Minister of Finance and Economy in three Spanish governments stated that his intention is not to extrapolate the Spanish experience to this country, but he assures that he hopes he could and is able to be useful based on the accumulated experience.
Business
The economist and politician stressed that Spain has long been committed to large business investments around the world, in Europe and especially in Latin America, "where the presence of Spanish investment is very high and also in the Dominican Republic."
In 1996, Spanish investments in Spain paid a premium for financing, a cost that disappeared with Spain's entry into the Eurozone. This situation allowed for a reduction in the public deficit and inflation, thanks to the public policies implemented, explained Montoro. These measures have facilitated the internationalization of companies, he said.
According to a report by the Business Intelligence Department of the Ministry of Industry, Commerce, and SMEs (MICM), Spain is the third largest investor in the Dominican Republic, after the United States and Mexico. Spanish investments in the country are distributed as follows: 65.6% in the tourism sector, 18.2% in real estate, 15.5% in energy, and 0.8% in the free trade zone sector.
