Press conference by President of the Government following his participation at the Belt and Road Forum for International Cooperation

Beijing

President of the Government.- Ladies and gentlemen, a very good afternoon to you. Thank you very much for attending this press conference.

As you are all aware, we have just finished this meeting entitled "The Belt and the Road". This meeting was organised by the Government of China, as you are also aware. From my point of view, this is very important, it is a major project and, if things are done well, it could be beneficial for all of us in the future, although we are talking about a medium- and long-term project, as I will now explain.

The main aim of the Belt and Road meeting, to state it clearly and in simple terms, is to enhance global unity, and ensure that everyone benefits from this union and that the effects are positive for all countries. The most important goals are the following:

- Firstly, to improve those infrastructures that, in the end, can unite different people around the world.

- Secondly, to make progress on free trade which, as you are also aware, and this is the opinion I have voiced on many occasions, is very important for improving levels of household well-being and wealth.

- Thirdly, it is also a question of uniting people through culture, sport, education and different languages.

- And the fourth fundamental goal is to boost tourism.

From a Spanish point of view, we believe that the approach adopted by the Government of China is very important, and we have all backed this for different reasons.

This is important for our companies because, among other things, the main aim here is to build land and sea infrastructures that serve to unite different people around the world and improve trade. As you know, Spain's construction companies have a long tradition, and they have shown this in the construction of infrastructures all around the world. We also have a long tradition of companies that export technologies, communications systems, traffic management systems, etc.

By way of example, you are well aware of some of the great infrastructure works that Spanish companies have tackled in recent years: firstly, the works on the Panama Canal; we are building the high-speed railway between Mecca and Medina; we are also undertaking major works on Heathrow Airport in London; we are also undertaking significant works in Turkey; building tunnels in the United States, in certain states, in the city of Seattle and also in Manhattan. Hence, we are talking about companies where 73% of their business activities are not carried out in Spain, but beyond our borders.

The experience of these companies is something that no-one can call into question or rebut, because Spain is a leading global power in terms of infrastructure; we have 13,000 kilometres of motorways, 200,000 kilometres of highways and in terms of the high-speed railway, we are the second-ranked country in the world in infrastructure, in fact second only to China. Hence, from the point of view of our companies, this project is very interesting.

Secondly, this could be very positive for Spain because whatever results in increasing trade around the world is also good for Spain. Whenever we have looked overseas, things have gone well for us. On certain occasions you will have heard me say that, if our economic recovery started somewhere specific, it was in the foreign trade sector, when our entrepreneurs and business leaders started to travel abroad from Spain and invest. You are aware that we have now enjoyed a foreign trade surplus for the last four years. This is a highly positive fact, showing the competitiveness of the Spanish economy, and the government forecasts another four years with a foreign trade surplus from now until 2020.

As you know, we export, in the first place, capital goods; in the second place, automobiles - a very important export sector in our country - agri-food products and also chemical products. Also in terms of services, not just tourism, we are very significant exporters of consulting and engineering products, and so on and so forth.

Hence, if trade is stepped up around the world - and there is a clear commitment to this - our country undoubtedly benefits in terms of our levels of well-being and wealth.

Thirdly, this project that is being proposed is key for tourism. Spain is a leading global tourism power; we are the second-ranked global power in this sector: 75 million inbound tourists visited our country last year, in 2016. We are talking about more than 10% of the Gross Domestic Product of our country and about a sector that provides jobs for some 2.3 million people. Hence, everything related to boosting tourism and uniting people is very positive for our country.

It is also very important, and this is one of the goals of this project, to unite people through sport and culture and to promote the Spanish language. I proposed this in my speech: 600 million people in the world speak Spanish, with 50 million of these in the United States.

And a strong commitment will also be made to educational exchanges. This will undoubtedly serve to enrich people culturally, to help us better know one another and be able to act in consequence of this and work towards a better world.

In short, we are in Europe, that is our natural habitat: at present we export a little more than 60% of our exports to the Eurozone, to the United Kingdom and to the rest of the countries in the European Union.

We have wonderful relations with Ibero-America; but Asia also has a huge market which is of undoubted interest to us; a very diverse market. I repeat, we are not only talking about the economy, but also about tourism, culture, sport, etc., etc.

Spain has some great advantages because it is a trading powerhouse - the second-ranked in Europe - because we have, as I said before, good companies, we have a very good tourism sector, we have the Spanish language and we are both a cultural and a sporting powerhouse. At this time - moreover I believe this is the greatest contribution that Spain can make - Spain can act as a link between Asia and Europe with both Africa and Latin America.

Hence, that, in short, is what we have tackled at today's meetings. We also held, as you know, bilateral meetings with the President of China and with the Premier. Bilateral relations are enjoying a very good period at this time. Our goal is to increase exports to China. After the four large European Union economies, the fifth country that we most export to is the United States, followed by Morocco and then China. But we must continue to make an effort and here you have a market of 1.3 billion people and logically, to the extent in which trade is stepped up and there is decisive action in favour of free trade around the world, things will undoubtedly improve for all countries and, more importantly, for all our citizens.

Aside from that - I repeat, based on my belief that this is a very positive project, a medium- and long-term project that could be very useful for improving the standard of living in the world, Spain will thus try to ensure that things proceed well - I am ready to take any questions you may have.

Q.- I wanted to ask you if you will take from China, from here in Beijing, any specific commitment for Spain and for our companies.

Secondly, could you give us some more information, if you are aware of it, on the cyber-attack that took place in many parts of the world, which seems to have started out in China?

President of the Government.- That is a claim that I wouldn't make under any circumstance. I cannot provide you with any further information at this time. Obviously, when I get back to Spain, where this is being studied with the services of other countries, I might be able to give you more information. Hence, at this time, I don't want, without having the information at hand and without being absolutely certain of what I am saying, to make any sort of statement. You can all speculate, and are perfectly entitled to do so, but the President of a Government, and obviously the President of the Government of Spain, cannot speculate and must always tread on very firm ground, and not offer information that he or she is not 100% certain about.

As regards commitments with companies, none have been made yet. The first thing we have to do is see what infrastructures are going to be implemented. There are many countries that were present here, some from South Asia, others more with a view to Europe: Russia was here, as was Belarus and countries like Pakistan. A plan will now start to be developed on improving infrastructures. That is where we want to see Spanish companies. There and, as I said before, we are well-positioned in terms of trade, tourism, culture and sport and, as I also said we are already undertaking major projects in Turkey, Saudi Arabia, also in Kazakhstan, whose president was at today's meeting.

Hence, on that basis we will start to work. This is an idea which, in my opinion, is very positive and that is why Spain has been here today and I think that we should continue to attend any meeting proposed in relation to this issue.

Q.- President of the Government, you talk about the medium and long term. Can you tell us approximately when this will all take place? When are we going to see the results of this summit?

Secondly, I wanted to ask you about domestic events. We were able to ask the Government Spokesperson on Friday but until now we haven't had the chance to ask you. Have you felt blackmailed on any occasion?

President of the Government.- I subscribe to that words said by the Government Spokesperson at that time.

In relation to the first issue, I cannot give you any concrete information because no specific dates have been agreed yet. What we have agreed to do is set things in motion. There are no 'routes' that reach… At this time there is a train operating that leaves southern China and travels to Madrid, a goods train that takes 15 days. The aim here is to improve these infrastructures and to build others. A bank was set up not long ago that Spain will participate in, the decision has already been taken to do this. Logically, China is the largest participant in this. But the goal is to seek financing with the fundamental aim of increasing trade and of uniting people, which is the second main goal. To do that, for both things, infrastructures are very important.

Q.- President of the Government, I am going to take you a few kilometres away from here, from Beijing, to Madrid. Right now there is a debate under way between the three candidates to see who heads up the PSOE [Spanish Socialist Workers' Party], which is the second largest party in our country, and one of the candidates has just said that if he wins, the first measure he will take is to demand your resignation. Do you believe that, depending on who wins these primary elections, the stability of your government is at risk?

President of the Government.- I must respect the decisions that the Socialist Party takes, and hence I will not make any comments on this statement - just imagine the ones I could make - or on any other issue. We have always respected the internal workings of the PSOE. They have decided to hold a debate, we respect the fact that they hold this debate and we will respect any decision they adopt.

My position is well-known: we won the last elections because that is what the Spanish people wanted, not for any other reason. The people have decided that the People's Party was the political force that should govern. We have 52 more seats than the Socialist Party, as you are well aware, and what we are going to try and do now, as we have been doing, is govern.

I believe that things are being done well. The economic outlook is very good. The latest employment figures we saw announced are truly wonderful, because the figures for the month of April represent an all-time record for a month of April. We have raised the growth forecast to 2.7%. At least 500,000 jobs will be created this year. The latest National Insurance figures, comparing April this year with April last year, showed 600,000 more NI contributors. All of this means that the People's Party is implementing the right economic policy and that is what I have to concern myself with. That someone threatens someone else with what they are going to call for or not call for forms part of the things that some political parties do, which, as you would expect, we must always respect.

Q.- I wanted to ask you about the Budget. I wanted to ask you if you are as optimistic about the possibility of pushing the public accounts through as the Minister for Public Works is about the Royal Decree Law on Stevedores.

President of the Government.- We hope that the Royal Decree Law on Stevedores will be passed on Thursday, 18 May in the Lower House of Parliament. I want to say two things about this: first, that the minister has been very persistent on this issue and that, if it is passed in the end, as it is logical and reasonable that it should be, then he will have done a great service to his country which, at the end of the day, is the main issue here.

Secondly, as I have said on several other occasions, it truly makes no sense for the Parliament of a democratic country, and, moreover, an important member of the European Union, like Spain, to overrule the Court of Justice of the European Union and say that it is not prepared to uphold its ruling. That would obviously be an attack by part of a democratic parliament on the rule of law, and hence, it is incomprehensible that this could happen in Spain.

I hope that this turns out well on Thursday, 18 May, because this also sends out a message of confidence and credibility abroad.

In terms of the Budget, the first step has gone through successfully. The global amendment to the Budget has already been defeated, as you know. The Budget is now in its passage through Parliament, and, as I said some time back, we are going to continue to work to obtain sufficient votes for this to go through for one simple reason that is easy to understand: this is the first Parliament of a legislature whose government was formed six months ago and it makes absolutely no sense - for the sake of reason, not for any form of prejudice - to halt this and create serious problems for our country, because this Budget contains items that benefit all of our citizens as a whole, above all, on matters of healthcare and, above all, on matters of education. So, quite frankly, it makes no sense not to pass this Budget.

We have made a great effort to talk to everyone, as can be seen by the fact that we have reached understandings with several political parties and have obtained 175 votes in favour, and we will continue to do this in the future. I repeat, if the Budget that is in its passage through Parliament is not passed, this benefits absolutely no-one and prejudices a great many people, above all it prejudices the vast majority of Spaniards.

Q.- I wanted to know what you expect from the Socialist Party or on what issues you expect to receive the support of the Socialist Party in the coming months, and on what matters you want to talk to the PSOE about during the rest of this legislature.

In relation to this issue, the President of the PNV [Basque Nationalist Party], in an interview with "ABC", stated that any proposal for an investiture pact is in his hands. I wanted to ask you whether you would be prepared to reach an investiture pact with the PNV.

President of the Government.- For the time being, we have reached an agreement with the PNV to approve the Budget, which is a very important decision, as you know, because it is the most important law that any government can present before Parliament. We intend to continue talking because we have 137 seats and I have mentioned on several occasions that this is the legislature that will require agreements, dialogue and consensus.

We can reach understandings with the Socialist Party on many issues. One of them, which is perhaps the most important one at this time, is undoubtedly the defence of national sovereignty and national unity, on which issue I imagine that the Socialist Party will rise to the circumstance; I can't imagine why it wouldn't.

There are also other issues that we will talk about with them shortly in relation to the whole of European policy. Things are moving on in Europe; we have the Brexit negotiations and we are going to make progress on defence policy and common foreign policy. It is likely that in the near future we will also start to talk in Europe about a European Budget, about a European fiscal authority and about Eurobonds. These are issues which are perhaps not for the immediate future but for the medium and long term, but on all of these issues we will have to talk with the socialists, as we will need to about defence policy and foreign policy.

I have every intention of reaching agreements. That is my intention, and moreover, it is my obligation. I hope that we are all able to rise to the circumstance rather than concentrating on such things as calling for resignations, or doing who knows what, or filing a motion of no confidence which, in the end, will have the effect that we are all aware of, isn't that true? So, I believe that we must act seriously and responsibly.

We have one major advantage, which is that things are going well from an economic perspective. We are now coming out of the worst economic crisis that Spain has gone through in decades. Hence, let's not deviate now and not get embroiled in things that aren't of interest. It is now time to deal with the key issues, which is why, when I said to you at the start of this speech that this meeting held here, in China, is important, that what is being proposed is serious and that, if things are done well, this could be very positive for tourism, for trade, for relations between people, for infrastructures, and hence, for improving the world, we are thus talking about an important issue.

Thank you very much.