"Our priority now is to approve the General State Budget for 2018 as soon as possible", says Mariano Rajoy

2017.12.11

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Villa Magna Hotel, Madrid

The President of the Government began his speech by referring to the consequences of the "unprecedented crisis" that "went on for five years", that "shed almost 10% of our wealth" and in which 3.8 million jobs were lost. He pointed out that the economic upheaval was of "such a scale" that "talking about overcoming the crisis" seemed "like an exercise in mere positive thinking".

Optimism regarding future

Mariano Rajoy underlined that Spain not only managed to turn the crisis situation around but that the indicators now "show a panorama of a healthy economy and one that is expanding". He highlighted such noteworthy figures as four straight years of economic growth in Spain of above 3% and that exports account for one third of GDP.

According to the President of the Government, "there is a clear horizon of certainty and prosperity that the Spanish people will be able to enjoy in the near future". In his opinion, "if we continue doing things well", the economic situation will continue "to significantly improve in the coming months and years". According to forecasts, the economy will grow by at least 2.5% per annum until the year 2020, unemployment will fall to 11% (2019 could close with 20 million people in work), the public deficit will drop to below 3% (Spain will be able to exit the Excessive Deficit Procedure and achieve budget balance), and finally, the public debt will fall to 91% by the year 2020.

However, Mariano Rajoy clarified that "the goal is not only to recover wealth and lost jobs", but also to "guarantee our model of well-being and social protection", since "it is not possible to develop a social policy without resources and resources can only come from a healthy and prosperous economy". At any event, the President of the Government argued that in order to achieve this goal, the formula is to continue down the path of budget stability and reforms.

Sustained and inclusive economic growth

In this regard, he added that "it is essential" and "now a priority" to approve "the General State Budget for 2018 as soon as possible" because this would send out "an unquestionable message of political certainty and stability in the country". "I am optimistic and will devote all my efforts to achieving this goal", he added.

Pool Moncloa/Diego Crespo

The President of the Government pointed out that it will also be necessary to take new measures to boost job creation - because this is an "element that is fundamental in any policy to combat inequality" - to improve the functioning of the market by eliminating administrative burdens - the recent approval of the Annual Regulatory Plan of Central Government is designed along these lines - to support entrepreneurial activity and to make progress on the digital agenda.

Mariano Rajoy highlighted that "we know what needs to be done in order to guarantee the sustained and inclusive growth of our economy in the coming years". "A plan exists", he added, "to improve the standard of living of our next generation, but above all to offer coming generations a better country in which to carry out their life projects".

Democratic principles

In relation to the situation caused in Catalonia, the President of the Government firstly advocated two principles that he described as "pre-political": legal certainty and the rule of law. He pointed out that these principles should "be beyond all discussion" because they are what protect political debate and guarantee that this "unfolds in a framework of co-existence, fair play and respect for the rights of everyone".

After stressing that "without the law you cannot have a free society", Mariano Rajoy added that "without respect for the law you cannot have legal certainty or liberty, and without these you cannot have wealth". On this point, he recalled the 3,000 companies that have left Catalonia recently, "fleeing from upheaval and legal uncertainty".

Regional elections on 21 December

According to his explanation, one of the reasons that led the government to trigger Article 155 of the Constitution was "to bring an end to the serious economic downturn" in Catalonia. At any event, he remarked that this damage "can be swiftly turned around" if, as from 21 December, a new era opens up in Catalonia and "the policy of constant challenge and disobedience" is definitively overcome.

Pool Moncloa/Diego CrespoMariano Rajoy also highlighted that although the government has lowered the growth forecasts for next year, the situation can change if normality is recovered. In other words, Spain will once again grow by 3%, as it did in the years 2015, 2016 and 2017.

Before ending his speech, the President of the Government gave a few words of praise for Spanish society because "it has shown that it can come out of apparently impossible situations, and it has done so with vigour and determination". It did so through the Transition, by joining Europe, by avoiding the bailout of the country and "we have just defended our model of co-existence from one of the most serious attacks it has ever been subjected to", he added.

Q&A session

When asked about the agreement reached last week on Brexit and how this will affect Gibraltar, the President of the Government expressed his "conformity" with the agreement because "it offers security and certainty". He said that he hoped that at the European Council to be held in Brussels later this week, "[Michel] Barnier will be given the go-ahead" to start to negotiate future relations between the United Kingdom and the European Union.

As regards Gibraltar, what is scheduled is that any future agreement reached between the European Union and the United Kingdom on Gibraltar will require an agreement between the United Kingdom and Spain.

As regards the transfer of assets from Lerida Museum to Sijena Monastery in Aragon, Mariano Rajoy recalled that this is not the first time that assets have been moved from a museum in Catalonia to this monastery by court order; there was another prior ruling which the Regional Government of Catalonia complied with. Upholding court rulings is the normal procedure in a democratic system, he argued.

As regards the elections on 21 December in Catalonia, Mariano Rajoy underlined that the People's Party will stand in these elections "with the aim of forming a government that is in favour of the Spanish Constitution, of democracy, of liberty, of the separation of powers, of the rule of law, and of everything that is rightful in any democracy in our peer countries". He also warned that "it is impossible to build any pro-Constitution alternative without the votes of the People's Party".

At any event, Mariano Rajoy denied that the electoral results in Catalonia will influence the general elections, scheduled for the year 2020. "People choose for the coming four years", he said.

Pool Moncloa/Diego CrespoAs regards the negotiations for the new model of regional financing, the President of the Government expressed his wish for "everyone to act with a constructive spirit". He also explained that it is necessary to have the support of the socialists for two reasons: firstly, "it is good to reach an agreement on an issue of this nature"; secondly, "if no agreement is reached, we don't have enough votes to approve it".

The President of the Government Rajoy, after stating he was "in favour" of the Special Tax Agreement in the Basque Country, also argued that "this has been calculated transparently" and in the same way as this has been done "for the last 39 years". He also recalled that this system, as well as being "recognised in the Constitution", existed back in the 19th Century and was even maintained in part during the "time of [Francisco] Franco".

In relation to the General State Budget for 2018, the President of the Government remarked that "we have already held some talks with some parties", such as Ciudadanos, the PNV [Basque Nationalist Party] and the parties in the Canary Islands. "We are going to see if between us all we are capable of forging a reasonable agreement and thus continue making the most of a buoyant economic period".
Mariano Rajoy also stressed that a "reform of the Constitution is not a done deal", and he clarified that it "is necessary to assess many things when opening a debate on something so important". He added that the reform of the Constitution "should not be a slogan", but rather it should "have content, which is what should be discussed".

As regard relations with the leader of the PSOE [Spanish Socialist Workers' Party], Pedro Sánchez, the President of the Government declared that "we have a democratic and reasonable level of dialogue".

In relation to the candidature of Minister Luis de Guindos to the Vice-Presidency of the European Central Bank, Mariano Rajoy specified that his has not yet been presented, but "it is clear that he is well regarded in Europe".

Non official translation