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Carlos García Pont, Professor, IESE, University of Navarra

How to stifle companies

Fri, 10 Jun 2011 12:10:36 +0000 Published in ABC (Catalonia)

I do not think it is necessary to defend that it is the companies that create employment and that the State can hardly sustain the employment if the companies do not create wealth. Well, this State, which is sustained thanks to the effort made by all of us who work in the companies, has found a new way to stifle and strangle them: delaying payments, delaying tax refunds or VAT reimbursements on exports. I suppose they have thought that the companies that have survived the crisis are very strong and can hold on a little longer. Well, let them hold on. If the banks do not give credit and these companies hold on, surely they can hold on a little longer.

In the past it used to be said that "you have trials and win them" alluding to the time it takes to win a trial. Now we can say "may your sales grow, but may it be to the State", as an evil eye for your worst enemies. As I don't know who said, you have to sell well, and that means selling with a margin to paying customers. And you can sell to the State -with a margin I am not so sure- but paying is very, very black. As I said; they have discovered a new way to drown companies.

Having said that, I raise my glass and congratulate those administrations -very few, that is- that make an effort to have serious relations with those companies that offer them their products and services. Not all the administrations, nor the politicians that govern them are in the same bag.