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Joint statement by Spanish Minister for Economic Affairs and Competition, Luis de Guindos, and German Finance Minister, Wolfgang Schaüble

Tuesday 24 July 2012
Spanish Minister for Economic Affairs and Competition, Luis de Guindos, and German Finance Minister, Wolfgang Schaüble. EFE picture

After their meeting in Berlin, the Spanish Minister for Economic Affairs and Competition, Luis de Guindos, and the German Finance Minister, Wolfgang Schaüble, signed the following joint statement:

We agree that the programme to strengthen the Spanish banking sector is an important part of overcoming the crisis of confidence in Spain and the Eurozone as a whole. The German Government, as well as a large majority in the German Parliament, support this programme that will help break the vicious circle between banking crisis and sovereign debt crisis. The decisive and swift full implementation of the roadmap included in that programme is essential for restoring confidence in the Spanish banking sector.

The Spanish Government has taken important steps to put its economy back on track. Those measures are vital for the Spanish economy to achieve sustainable growth and recover its competitiveness.

Comprehensive reforms have been undertaken, particularly in the area of fiscal policy, in the labour market and in restructuring the banking sector. By reducing the excessive deficit by the end of 2014, Spain is pursuing a well-balanced consolidation strategy.

Moreover, a rule on budgetary balance has been written into the Spanish Constitution. In addition, the recent reforms of the national budgetary framework will contribute to sustainable fiscal consolidation in the regions and, thereby, in all public administration services as a whole.

The current level of interest rates in the sovereign debt markets does not correspond to the fundamentals of the Spanish economy, its growth potential and the sustainability of its public debt.

The ministers stress the importance of working together with European partners on the swift implementation of the European Council decisions of June 29. In particular, this includes the comprehensive design and implementation of an effective banking union with a single European banking supervisor.

Ministers welcome the initiative of both countries to cooperate in the field of youth unemployment and to improve professional training.