The ESEC recommends the creation of a permanent fund to deal with major shocks

In order to cope with the persistent soaring prices and to preserve the purchasing power of the most vulnerable population in Morocco, the Economic, Social and Environmental Council (CESE) has proposed the creation of a fund intended for this category while opting for strict rules of an immediate nature and total transparency of its use.

In a statement detailing its proposals and published on Thursday, the council recommends the acceleration of the implementation of a number of actions with the aim of reducing the impact of the inflationary shock and the economic repercussions and contributing to the creation of a balance in the living conditions and purchasing power of Moroccans.

For our country, if the significant price increases observed since 2021 remain mainly of external origin, this does not however prevent us from noting amplifying effects at the internal level, especially since during the last three months of 2022, the increases prizes have been broadcast to non-tradable products“, emphasizes the ESEC, indicating in its document that multiple factors such as the lack of organization within the markets offering agricultural products or fuel as well as the observed abundance of unmanaged intermediaries have encouraged this problem.

The EESC has stated that ” taking into account the nature of the inflation suffered by our country, and in a context where the economic activity indicators show the absence of strong pressure emanating from domestic demand on prices, the public authorities have taken measures specific short-term measures, in order to mitigate the effects of inflationary pressures“.

According to the Council’s document, Morocco is confronted, like countries around the world, with the multiple repercussions of the sustained pace of the high rate of inflation, which has had a significant impact on the purchasing power of the populations. The inflation rate reached 8.3% at the end of September, a rise that the Kingdom has not seen for several years.

Therefore, the EESC’s proposals include measures focusing on providing the necessary support for citizens who fall into the most vulnerable categories and who are barely going through this delicate period. These aim in particular to strengthen the control of compliance with competition rules in the various sectors affected by inflation, in particular those of basic products, while providing for penalties in the event of violation of these rules.

The ESEC seeks to impose a strict approach in favor of the population concerned by covering the increase in the prices of goods subsidized by the mechanism of the Compensation Fund, ” the signing in April 2022 of an agreement within the framework of social dialogue providing for the improvement of income in the public and private sectors over two years, without omitting the support granted to carriers and the maintenance of electricity tariffs. In parallel with these measures, Bank Al-Maghrib recently raised its key rate by 50 basis points, an action which goes in the direction of avoiding a de-anchoring of the expectations of economic agents in relation to the future evolution of prices.“, we read in the press release.

However, and in view of the continued rise in prices, the current situation requires the implementation of direct measures with greater impact. Thus, to reduce the impact of inflationary pressures experienced by our country, the ESEC has formulated a set of recommendations, in the short and medium term“, adds the same source.

In this respect, the EESC’s recommendations can be summed up in the acceleration of ” the implementation of the unified social register (RSU) for optimal targeting of aid to the most disadvantaged“, the study of the possibility ” creation of a permanent stabilization fund in the face of major shocks as well as the feasibility of creating a national maritime freight transport company“, the investment in “ the internal storage capacities of energy products and to consider the possible methods of mobilizing the storage capacities of SAMIR“, have recourse to ” the reform and organization of spaces for the marketing of agricultural products“, and finally, the establishment of a “ Observatory of prices and margins of basic and basic necessities“.

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