I will concentrate my comments on four main aspects: the NGEU programme, the expenditure items most directly linked to management of the pandemic, certain specific discretionary measures, and the main items whose future development is primarily shaped by the assumptions included in the macroeconomic forecast. First, the NGEU programme to which I referred earlier. This programme is, without a doubt, on account of its magnitude, the factor that most distinguishes this Draft Budget from any other presented in Spain in recent decades. In particular, in 2021 the Government expects to receive € billion in European funds from this programme. This is in addition to a further € billion under the REACT-EU programme which is not included in the Draft Budget and will go directly to Spain’s regional governments. These funds are distributed broadly across the expenditure headings, although they are allocated especially to spending on industry and energy (21.1% of the total funds), civil research and development and innovation (17.8%), infrastructures (17.6%), health (11.1%), education (6.8%), and housing policy (6.2%). On the basis of these funds, increases have been budgeted in certain expenditure items that, in terms of historical performance, entail unprecedented annual rates of growth.
But clearly getting people the resources so that they can become homeowners in a prudent way is a good thing. And what we saw in the financial crisis, in the run-up to the financial crisis, is that we were giving credit to people in an imprudent way. I think as long as it can be done in a prudent way, where people understand the responsibilities, have the income to pay on their mortgages, I think it’s something that we definitely want to encourage. 12 / 15  BIS central bankers' speeches  So, what I would suggest is give me your card, and I’ll give it to the right people in the Federal Reserve Bank of New York, and we’ll have a conversation and see what we can do. This is not something that we could probably be involved in directly, as a funding provider. Legally, we don’t have the authority. The Federal Reserve is pretty powerful in terms of monetary policy. But our mandate is also pretty narrow in terms of what we’re allowed to do. I remember during the financial crisis, people were coming in and saying, “you should do this, you should do that, you should do that.” And most of the things that they were suggesting that we do were some things that were not actually allowed by the Federal Reserve Act that was passed back in 1913. Come talk to us and we will see what we can do.