Economist Chief Exits Banco de España Amidst Controversy
In the heart of Madrid's historical district, Ángel Gavilán, the Director General of Economics and Statistics of the Bank of Spain, took center stage on Tuesday to present his annual economic report. However, the event, usually held in a grand auditorium, was held in a smaller hall, due presumably to logistical reasons.
Reflecting this change, this year's report saw a pronounced reduction in size, falling 104 pages shorter than its 2023 counterpart. The document, at times, appeared stripped of its usual in-depth analyses, joining the ranks of several traditionally included sections that were omitted altogether, such as those on public policies, ecological transition, housing, inequality, and business demographics.
Gavilán addressed these changes in a two-hour question-and-answer session, delivering his answers in his characteristic soft and monotonous voice. Quite notably, the 2024 report did not touch upon the growing concern about the Spanish pension system, an issue that demands nearly €60 billion in annual state transfers. This omission correlates with the new governor, José Luis Escrivá, who allegedly characterized the bank economists as "unsophisticated."
Moreover, the report lacked the usual detailed breakdown and summaries found in past reports, and the coverage on employment was significantly reduced to just 11 pages, compared to three chapters spanning 35 pages in earlier editions.
Subsequently, Gavilan tendered his resignation shortly after presenting the report, sparking discontent within the Bank of Spain and robust criticism of Escrivá's influence on the institution [1][4][5]. The choice of venue for the presentation, too, might hold certain implications, particularly as it contrasts the usual grandeur of the event. The reduced scope, conciliatory tone, and less prominent setting elicit the possibility of a deliberate attempt to minimize controversy or sensitivity towards the controversial nature of the report. However, this interpretation remains a reasonable speculation since no sources explicitly explicate the reasons behind the change in venue.
The reduced size of this year's economic report, lacking in-depth analyses and omitting sections on public policies, ecological transition, housing, inequality, and business demographics, suggests a shift in focus. This shift coincides with the new governor, José Luis Escrivá, who reportedly characterizes the bank economists as "unsophisticated." Furthermore, the absence of the Spanish pension system issue in the report and the choice of a smaller venue for its presentation may indicate an attempt to minimize controversy or sensitivity towards the controversial nature of the report, although the reasons behind these changes remain unclear.
