Lhe government coalition led by Aziz Akhannouch ran out of luck when he came to power. Just emerging from the health crisis and its consequences on public finances and employment, Morocco is facing unprecedented inflation and a drought that has not been observed since independence. Abdellatif Maâzouz, president of the Alliance of Istiqlalian economists, describes the economic situation as «stagflation». It calls for emphasizing the need to activate the many levers of growth both in terms of strengthening supply and action on domestic demand. The secretary general of the party, Nizar Baraka, took the opportunity to present the government’s balance sheet after nearly a year at the helm in an attempt to preserve household purchasing power. According to him, priority was given to the stability and resilience of Morocco, equity and solidarity as well as national sovereignty.
“The choice of stability and resilience was made because the government considers that it was essential to support demand and respond to the various emergencies, in particular those linked to water stress and the food crisis, in order to be able to maintain, stabilize and strengthen the country’s stability”, he said. In this wake, Baraka noted that it is important to act to improve the income of those who have a job, but it is also important to preserve employment.
This is the reason why, he said, the government has supported small and medium-sized businesses, thanks in particular to the support and extension of stimulus credits. The second axis relating to equity and solidarity is articulated, for its part, on the social State, by strengthening social protection and ensuring a better reduction of territorial disparities, he noted. The investment charter, which is currently being discussed in Parliament, fits perfectly into the logic of reducing territorial disparities, insofar as this project has integrated, in addition to support for the sectors of activity, the support of investment, particularly in the most remote areas. And to continue that the government was not in a logic of support for the regions, but rather in that of support for the provinces to facilitate this dynamic.
Also, a map will be created to be able to define where are the future industrial zones which will be sustainable and which will meet the criteria of the European Union to ensure that they comply with environmental standards (water efficiency, energy efficiency and reuse of waste). With regard to the third axis, Baraka affirmed that the efforts made by the government aimed at strengthening the national sovereignty of Morocco (energy, food and industry) and expanding it in a logic of regional sovereignty. And this, by emphasizing the importance of playing an essential role for the emergence of Africa and responding to the major problems facing Europe.
“In this context, we are part of a logic of taking part in the European energy solution through the Nigeria-Morocco gas pipeline and green hydrogen and also for Africa, because this project affects 13 countries of the Economic Community of West African States (ECOWAS) and is expected to benefit 400 million people”, he pointed out. In addition, Nizar Baraka announced during this meeting that the government will lower income tax on the occasion of the 2023 Finance Law..
A way, according to him, to break the transmission of inflationary pressures by giving income to citizens. Nizar Baraka recalled that the government has already acted in this direction this year by increasing the minimum wage by 5%, while another increase of 5% is planned for next year, in addition to the 10% increase in the SMAG acted this year. On another note, the Minister indicated that the generalization of family allowances in 2023 will cost the State 16 billion dirhams each year and will make it possible, economically, to maintain a minimum consumption among vulnerable populations, particularly in the rural world. This measure will in fact be accompanied by a strong movement of banking and inclusion of these populations.