The Entrepreneur Support Act, which Rajoy outlined yesterday for a big group of small business owners, signifies a major step toward generating wealth in the country, but lacks a sturdy explanation of how these owners are supposed to get the financing they need to run their businesses.
Nobody is providing any suggestions for how the businesses will get their much-needed cash. For its part, the govenrment is focused on controling its annual deficit and the national debt. But the difficulties of small- and medium-sized businesses are real and clear: they pay 77% more for financing than people in their position in Germany.
The Prime Minister has tasked the banks (particularly public-owned banks) with the work, asking them to change the investing landscape for Spanish businesses. But the government will need to offer more legal security and not change banking sector regulations often if the banks are to accept the challenge.
