Press conference by the President of the Government after the meeting of the Council of Europe

Brussels

Ladies and gentlemen, a very good morning to you and thank you very much for coming.

Allow me to start this speech by expressing my condolences to the families of the three people killed yesterday in Teruel: the Guardia Civil officers Víctor Romero and Víctor Jesús Caballero, and the civilian José Luis Iranzo.

It has been a terrible event that has shaken all of us, and it is even worse, if indeed possible due to the youth of the victims and the time when it occurred. I would like to congratulate the Guardia Civil for the arrest of the alleged killer, who as we have learned had also killed other officers in Italy. That is what the Italian Prime Minister, Paolo Gentiloni, conveyed to me this morning, as he expressed his condolences to me.

Ladies and gentlemen,

As you know, the last European Council meeting of this year has just concluded, and as you also know, it has had an extensive agenda: security and defence; the social dimension, education and culture; migration policy; climate change; foreign relations; the European and Monetary Union; and finally, Brexit. The discussions have been intense and fruitful.

First, I'll discuss the Common Security and Defence Policy.

As you know, at this Council meeting we have welcomed the launch of the Permanent Structured Cooperation, the PESCO, which is an ambitious and inclusive new framework for investing in security and the defence of the European Union and its citizens. With this new initiative, we will improve our defence capabilities and our readiness for military operations; NATO will also benefit from these improvements, strengthening the European pillar of the Atlantic Alliance, which continues to be a key element of our collective defence. Spain wishes to build European Defence to the benefit of NATO.

Spain heads up this group, and in fact we continue working with the other three co-sponsors of PESCO in this and other initiatives on European defence. This will also be manifested through specific projects which will benefit our defence industry. Along the same lines, we are boosting the European Industrial Development Programme on defence issues, aimed at backing competitiveness and the innovative capabilities of our industry, and at incentivising the cross-border capabilities of our small and medium-sized enterprises.

With these and other measures addressed in this Council meeting we expect to strengthen the EU and also our national defence.
The Council meeting also dealt with the social dimension, education and culture, in continuation of the discussions that took place at the Social Summit of Gothenburg held on 17 November.

After overcoming the economic crisis, the top priority must now be citizens in the current reflection on the future of Europe. We cannot ignore the figures that clearly show that unemployment and social inequalities are among the main concerns of our citizens and it is therefore a priority to respond to such concerns.

In the European Council we have returned to our reflections in Gothenburg in the social area, with particular reference to the European Pillar of Social Rights.

We have also addressed the Action Plan to deal with the gender wage gap between men and women for 2018-2019. Although there is still some work to be done, we are making progress in this area. Over the last few years the wage gap in Spain has narrowed by four points, and it is now under the European average and at an all-time low.

We have also agreed on the need to make further improvements in the skills of European citizens, in a context marked by globalisation and technological change.

The dialogue on education and culture is part of the framework of the Leaders' Agenda promoted by President Tusk, and it has taken place in accordance with the new working method agreed during the Tallinn Summit on 28 September. Under the Treaties, the Member States are responsible for education and culture, but the EU can play a relevant support and coordination role in these matters. That is why we have focused on a series of initiatives aimed at improving the mobility and exchanges of our young people and students, such as the additional backing of the Erasmus Plus Programme. Spain is the European country to receive the most Erasmus students and has held this leading position every year since 2001.

Also in the area of education and culture, we have called for proposals for other initiatives in the field of digitalisation and improvement in the conditions for the development of the European cultural and creative industries and the mobility of its professionals.

On another front, the European Council has valued positively the Climate Change Summit that took place in Paris this very week.
Spain continues to be firmly committed to the fight against climate change. On 12 January this year, our country deposited the instrument ratifying the Paris Agreement. It has also ratified the Doha Amendment to the Kyoto Protocol, which establishes the second period of commitment to reduce greenhouse gas emissions between 2013 and 2020.

Spain is on the path to meeting its emissions reduction targets for 2020: in 2016 greenhouse gas emissions fell by 3.5% on 2015 figures. Furthermore, with the aim of meeting Spain's commitments for the year 2030, it is drafting the Climate Change and Energy Transition Act.

As you know, the European Council has given special importance to the question of migration. It has stressed the importance of the external dimension of migratory policy and cooperation with countries of origin and transit, which are our unquestionable partners in tackling this challenge, as indeed Spain has been pushing for. Migration represents many challenges and requires appropriate resources. I have supported the provision of predictable, sustained and sufficient finance.

As regards the reform of the Dublin Regulation, Spain has conveyed the need for this reform to be guided by the principles of consensus and balance between solidarity and responsibility: the reform must take into account responsibility and the efforts made by those Member States that constitute the external border of the EU.

Once the ordinary European Council meeting was concluded, today we held a Euro 27 Summit in an open format where non-euro countries also took part, except for the UK. This meeting forms part of the Leaders' Agenda promoted by President Tusk. This political support is very important, because as Spain has always supported, extending Economic and Monetary Union is essential for a strong and stable Euro.

At this summit we have therefore discussed the next steps forward in this area. What is most important is to complete Banking Union. This is one of the main priorities for Spain and that is why I have supported specific advances made. In fact, once the European banking supervision and resolution mechanisms have begun to operate, it is the time to boost the work being done to create a European deposit insurance system and to strengthen the Single Resolution Mechanism with a joint support fund. We have agreed that the ministers will work on these questions in the coming months.

We have also discussed the possibility of transforming the European Stability Mechanism, the ESM, into a genuine European Monetary Fund that can improve our capacity to respond to future crises.

In addition, with respect to the future we have to continue to work on other elements that are key for improving the operation of Monetary Union. The Spanish position on this matter is well known. My government has always advocated creating, in the long-term, a Fiscal Union, with a common budget, a single authority, one minister, and Eurobonds. Over the coming months, we will continue to promote these ideas together with our European colleagues.

The European Council meeting of 27, in its Article 50 format, adopted the guidelines presented by President Tusk, which in the light of the joint report adopted by the European and British negotiating teams, have noted that sufficient progress has been made in the first phase of negotiations on the withdrawal of the United Kingdom from the European Union. Based on these guidelines, the European Council has decided to proceed to the second phase of negotiations on the transition regime and the framework of future relations with the United Kingdom.

We are grateful for the efforts made by both negotiating teams and we repeat our support and confidence in chief negotiator Michel Barnier and his team, as well as the constructive spirit shown by the British side. Our assessment of the agreement reached on the first phase is positive, above all because it gives particular importance to safeguarding the rights and interests of citizens, which is the overriding goal of the negotiations.

We welcome this agreement, but we are aware that the most complex part still lies ahead of us: that is, the negotiations on the transition period and the framework of future relations. Our work will be guided by a very clear objective: to provide certainty and security to citizens and economic agents.

We are aware that the United Kingdom has declared its wish to withdraw from the European Union, but not from Europe. We hope that the work that is to begin soon on future relations will allow us to have strategic relations with this key partner. The European Council reaffirms its aim of establishing a close association with the United Kingdom, once it has withdrawn from the Union.

In short - and this is where I conclude - it has been a Council meeting with many issues, each closer and more important for the lives of Europeans.

Finally, I would like to thank the gesture of those responsible for the European institutions, Juncker, Tajani and Tusk, of donating the money they received from the Princess of Asturias Award to the victims of the horrendous forest fires in Spain and Portugal last summer. Once more, for its people, Europe must mean solidarity, security and economic growth. It is the task of everyone to achieve this.

Q: Pilar Santos, from El Periódico de Cataluña. Let me ask two questions related to domestic politics. If you allow me, I would also like to ask a third about Europe; but the two that interest me are about Spain.

When the article 155 measures were approved, one of the things you did was to call elections to the Catalan Parliament, explaining that it was because you wanted a short intervention. The ballot boxes could give rise to a very close result that is difficult to handle. Are you concerned that 155 could have to extend over time? Do you believe it will be necessary to modify one of the measures of 155 if it lasts?

And another subject. You have a legal background and a great deal of political experience. I'd like to hear a reflection from you on the idea of political pardons. Do you think they are of any use for reconciling societies?

President of the Government: I'm not a commentator. You can't ask me to give you a class here about legal matters; I can give you my political opinion, which is what is expected from me, other people can take care of other matters.

As regards article 155, I took the decision at the time, and to some people it appeared a very strong move, and to others less strong, but as I have said a number of times, I've defended my position, because I believe that it has been proportional and reasonable. It was absolutely impossible and absurd to think that the Government would not do anything when someone decided to declare independence of part of the national territory. It was absurd not to take that decision; but an exceptional response was provided to an exceptional situation, however exceptional measures should not persist for an excessive period.

So I took the decision that also involved a message to say: here it's not a case of the Government trying to govern the Catalan Government; here it's a case of recovering a situation of normality, and above all recovering the law. When someone decides unilaterally that the Constitution should not be applied in his territory; when he decides that the Statute of Autonomy should also not apply; and when he decides that the Constitutional Court and the rest of the courts do not affect him, don't matter to him, it's clear that some decision had to be taken; and I believe, frankly, that the decision taken was proportional and reasonable.

So having said that, until when is Article 155 in force? I'm surprised that people ask me that, because they do ask me on numerous occasions. The answer is given by the Agreement we approved in the Council of Ministers at the time: until a new government is formed after the elections. So when a new government is formed, we will then be in a different situation. But that is an issue that has been resolved for some time.

As regards pardons, the Government has been enormously restrictive with respect to granting pardons, above all in the case of politics; but what's more, I don't think it makes any sense, when the courts have not yet made any decision; it's too far removed from reality. At present, the courts haven't even summoned anyone, at least I haven't heard it, to any hearing, so there has been no summons, no trial, no court decision, or any petition for a pardon, so there is nothing there.

Q: We've seen today the last surveys that could be published. According to the survey published by ABC, Ciudadanos would win the elections. I'd like to ask you to what extent you believe that the level of turnout can be decisive for the constitutionalists to win on the 21st.

If you will allow me another question, we've also seen in recent days the killing of a man in Zaragoza for wearing the colours of Spain's flag on his clothes. I'd like to ask you as President of the Government, whether you are concerned that this hatred is spreading, this environment of hatred, everywhere in Spain.

President of the Government: Frankly, yes, I am concerned and I hope that it's the last time such a terrible situation as the one you referred to occurs. I hope that the courts will act, and I'm sure they will, and that the person who has committed this act of murder will be subject to the full weight of the law. I think it is extremely worrying and very serious, and I believe it would be good if many people made an effort to try to be more measured, more moderate and calmer, because there are some sectors in our country that undoubtedly are not helping at all.

As regards the opinion polls, participation is also important. Whenever elections are called I believe that it is very positive that the people should turn out to vote, and of course I would like to take this opportunity here, as I am doing these days, to the best of my possibilities, there in Catalonia, to urge people to vote.

What the opinion polls are telling us, basically, is that what some people announced was widespread support for the independence of Catalonia is quite simply a lie; and what these same polls are telling us is that the irresponsibility shown by some people has caused a tremendous rift in Catalan society.

The only thing I can say is that I trust that as from 21 December, a new political era will open up that is based on normality and tranquillity, in which governors obey the law and do not act above the law; and governors obey the rulings handed down by the courts. Because if not, we are in a situation that is far removed from what is a modern democracy.

So having said that, we all have to work to overcome the breach that has been opened up, but I repeat, what is most important is that we should forget this period that has undoubtedly been disastrous and move to a new period under the rule of law, with normality, without divisions between groups, families or individuals, and with only the discrepancies that are inherent to any democratic society.

Q: Mr. President of the Government, I would also like to mention two aspects of the news relating to domestic politics.
Today we have learned, for example, that FIFA has even raised the possibility that Spain may not take part in the next World Cup because of the alleged interference by the Government in the Spanish Football Federation. I'd like to know if you have anything to say about this.

As regards the future of Catalonia, the opinion polls have indeed given us a difficult situation to interpret. You've made an initial assessment and I'd like to know whether if a government is formed in Catalonia after the elections with a president from, let's say, a constitutionalist party, whoever it may be, in this case it could be a leader of Ciudadanos, of the PSC or of the PP, whoever... If you were asked by the President of the Regional Government of Catalonia for a pardon for the leaders who are now in prison, what would you do?

President of the Government: I can't ask what would happen in the case that someone presented it to me if, as I said before to your colleague, there has not even been a preliminary hearing against anyone, no one has been sentenced and no one has asked for a pardon. I believe that anticipating events for time immemorial makes no sense. What I say is that the Government has been very restrictive when it comes to granting pardons, and I also say that it has been much more so in the case of political leaders, and I also say that the vast majority of Spanish public opinion has asked the Government to act as it has acted so far.

With respect to the FIFA issue, of course I have something to say. I simply don't contemplate this scenario that you have referred to. I'm absolutely convinced that Spain will take part in the World Cup in Russia and also that it will win it, which are two different things. The minister has told me that he has not received any communication from FIFA, but simply a letter from someone in FIFA asking for a meeting. But I repeat, the behaviour of the Government in this entire affair is exemplary and those who are in charge of the Higher Council for Sport and the Ministry can count on the complete support of the President of the Government.

Q: My question is about the Council. Having seen the discussion on the reform of the euro it appears that there was some dispute between Rutte and Macron. You have said what Spain's goals are, but after today's discussion how optimistic are you about seeing these goals met in the medium term, or at any rate some of them?

President of the Government: I thank you very much that you ask me about a subject that has occupied me for many hours, and about which we have had an in-depth discussion today.

How do I see the situation at this point in time? I believe that we have to distinguish here between the short and the long term. In the short term I believe that next year, 2018, an understanding may be reached to complete Banking Union. I believe that a European Deposit Guarantee Fund is possible, and I believe that a European fund can be assigned to the Single Resolution Mechanism; and we'll see if it's possible - that would be the third point - to convert the ESM into a kind of European Monetary Fund. I believe that on these three issues there are possibilities of reaching an agreement in 2018.

Then the final design of Economic and Monetary Union is more complicated; but I believe that an understanding will also be reached here, probably - no, not probably, certainly - within a longer period of time. You know well that Europe has been constructed little by little and the creation of the euro itself was not easy, and certain requirements had to be complied with.

Now in my opinion, you cannot have an Economic and Monetary Union without a Fiscal Union. So there has to be a truly European budget; there has to be a European authority, let's call it a Minister of Finance, or of the Treasury, or the Economy, or whatever you choose, and there also have to be Eurobonds. Of course, I understand that to reach this phase of Economic and Monetary Union all the countries will have to carry out the tasks they have been assigned, there will have to be structural reforms and fiscal discipline.

So, just as happened at the time of the euro operation, when countries were told "to join the euro you have to comply with certain requirements on the deficit, on debt and on inflation," here too the countries will have to be given some requirements in the matter of competitiveness of their economy to enter the Fiscal Union phase.

So I see that in the short term things can be done, to sum up, and that in the medium and long term we are moving towards this situation, at least in my opinion. Now I'm not in a position to say when this can be; but it's essential because we can't in any case remain half-way down the path. In the discussions, in the end, the present time prevails and at a certain time it appears that it's not a good idea; but I recall that when I came here for the first time, in my first Council meeting at the start of January 2012, it was impossible for Banking Union to merge, and yet now, six years later, we're talking about finally and definitively closing Banking Union.

Q: Adolfo Lorente, of El Correo. Also about Europe, although it is related to Spain as well. I don't know if taking advantage of your visit to Brussels you've been able to talk to your colleagues with respect to the European Central Bank, the position that is vacant on the Executive Board. Have you had the opportunity of talking with Merkel or with Macron about this issue to ask for their support? Today, as we are in Brussels, could you confirm that the Spanish candidate to fill the post will be Luis De Guindos, because you have to present the candidate to the Eurogroup in January?

President of the Government: I'm not in a position to give names at this point in time; but I can tell you that I've talked to my European partners, not in this European Council meeting, but before, and that Spain of course will present its candidature for the vice-presidency of the European Central Bank. It did not present it previously, as you also know, and a Portuguese Socialist was chosen as president, to the Eurogroup.

Q: Beatriz Navarro, from La Vanguardia. I also have a couple of questions on European matters. On Brexit, approval has been given today to proceed to the second phase of negotiations and start to talk about the transition period of two years that London wants. My question is what regime does Spain want or is Spain prepared to have applied to the territory of Gibraltar? Because once the United Kingdom leaves, any change can only be applied by agreement between Spain and the United Kingdom. I don't know what compensatory measures you have in mind if Theresa May asks you to apply the transition period there.

Also, in relation to the question on the ECB, the European Parliament, which as you know, will hear the candidates for vice-president of the bank, has expressed its interest in taking into account a gender balance. I was wondering if Spain will play this card by presenting a female candidate instead of a man.

President of the Government: We always take into account gender balance. Proof of this is that the Speaker of the Lower House of Parliament, the Vice-President of the Government, and the General Secretary of my party are all women. So we have always taken balance into account, and we will continue to do so. So this means that we can present a man or a woman to the vice-presidency of the European Central Bank.

As regards the subject of the transition period, I'd like to say one thing: no set period has been determined for the transition period. There is talk about two years, but this is not closed. Second, there will be no agreement on a transition period until the future relationship between the United Kingdom and the European Union is finally resolved. In other words, first the problem is resolved, and then the transition period is agreed; and during this transition period the United Kingdom will be subject to European regulations, but it may not participate in EU decisions.

What is the situation of Gibraltar in this situation? What we have agreed is that any future agreement between the United Kingdom and the European Union will require an agreement between Spain and the United Kingdom to be applied to Gibraltar. So what we have asked is that this should also apply to the transition period; not only to the future relationship, of course, but also to the transition period. That is what appears in today's Conclusions as an inspiring principle. These are technically difficult matters, as you can see.

Q: Griselda Pastor, from Cadena SER, Mr. President of the Government. I believe that yesterday you saw off Theresa May with applause, and I'd like to know what it is that you wanted to express.

President of the Government: If I tell you what I wanted to express, basically it is that I'd like these negotiations to progress quickly; that we, Spain, want to have the best possible relations with the United Kingdom; that the five hundred thousand British people who live in Spain should continue to feel as comfortable and well treated as they have until now; that the two hundred thousand plus Spanish people who live in the United Kingdom should also feel well treated in the United Kingdom; that the British tourists who come to Spain, eighteen million last year (it's the country in the world from where most people come to visit us) should continue to visit us and that the British people should continue to invest in Spain - Britain is the second biggest investor in Spain, but for Spain Britain is the main destination of its investments.

So we have a magnificent relationship with the United Kingdom, we want to preserve it and really today we have also applauded Mr. Barnier, because Mr. Barnier made a great effort, Ms. May made a great effort, and as politicians are not normally applauded much, at least we applaud each other.

Thank you very much and Happy Christmas.

(Transcription edited by the State Secretariat for Communication)

Non official translation