Club Under the Public Management at ESADE in Madrid we launched last year the crisis cycle and public sector round table The state's role in the economy: a cambioi course? . We wondered then if, after the liberal revolution of the 90's and first decade of the new century, the financial crisis posed a return to Keynesianism and a greater role of the public in the economy.
After a year, on Monday retomábamos the cycle with a completely different picture. A good idea of \u200b\u200bsome members of the Club will add the sauce a very recommendable article entitled Francisco Longo utility Bubble and put on the table well-known personalities from the public, business and financial journalism as Elvira Rodriguez, Miguel Antonio Carmona and Miguel Angel Noceda . All this with a suggestive title: "And now ... what and how to finance public sector?" .
Professor Longo hostilities broke out with a brief but juicy speech in which he added a new derivative of the current crisis: the crisis in state-society relationship and the need to make an effort to preserve basic features of our model . This would require - in his opinion, a redefinition of the redistribution scheme, the catalog of public services and the universality of them. In short, a reform of the patterns of governance and public administration which was previously considered difficult if it is very important today. 
All agreed that the crux of the matter was to determine what should be the ideal size is how much the public provided with means, what the organizational structure and finally, what funding schemes . Taking into account that a large share of public expenditure is managed by the CCAA and that 65% of the expenditure on the welfare state and 14% infraestraestructuras. In this sense for Elvira Rodríguez effort has making the expenditure side, public sector competitive structure, separating the cyclical than structural measures in the short, medium and long term and implement policies for productive expenditure (eliminating subsidies). If you do not decide where to put the line, others will do for us. Antonio Miguel Carmona the State has an important role in the economy and a decisive factor redistribution. Because it brings balance is an improvement over what can not provide the private sector. The important thing is not so much questioning and cut the deficit but to analyze the nature, seasonality and decide on the opportunity costs of financing public activity or tax debt. In that sense, any action on public expenditure should not be cut for no reason but to reduce items that allow me to do things to stimulate productive investment and employment.
Miguel Angel Noceda incited the debate by tabling a controversial issue: Less public sector through privatization, yes or no? Elvira Rodriguez For the key issue is to define what is meant by "privatization" in the case of private provision of public services (wroth converted), public-private partnerships to achieve greater effectiveness and efficiency, yes. In this case, in his opinion, there should be no ideological bias. Addition was shocked that it has increased the mass of structural spending cyclical income support (construction). According to Antonio Miguel Carmona important thing is to have a capable State (muscular) and efficient enough, not as the Irish which has collapsed to a minimal state. And wondered what kind of privatization, in the sense that there is only a facade to put in the hands of groups of para-or pseudo private interest (savings banks), which came to be major public corporations. Furthermore, privatization is not always easy: there must be a good buyer and parts of public service deficit just want them.
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