"Extending the Economic and Monetary Union is essential for a strong and stable Euro", says Mariano Rajoy

Euro-27 Summit, Brussels (Belgium)

During his press briefing, the President of the Government claimed that an understanding may be reached on Banking Union in 2018. In his opinion, the time for starting work on setting up a European Deposit Insurance System and to strengthen the Single Resolution Fund with a common support fund is when the European supervision and resolution mechanisms for banks start operating.

Participants at the Euro-27 Summit, held in an open format, at which those countries, except the United Kingdom, that are not members of the Eurozone, took part as well, also debated the possibility of transforming the European Stability Mechanism into a genuine European Monetary Fund, which improves our ability to respond to future crises, explained Mariano Rajoy.

The President of the Government pointed out that "extending the Economic and Monetary Union is essential for a strong and stable Euro". In order to improve the functioning of this Monetary Union, the government "has always advocated creating, in the long term, a Fiscal Union, with a common Budget, a single authority and Eurobonds", he stated. In his opinion, "you cannot have an Economic and Monetary Union without a Fiscal Union".

Brexit

Pool Moncloa/ Diego CrespoThe European Council meeting, in its Article 50 format, verified that sufficient progress has been made in the first phase of negotiations on the withdrawal of the United Kingdom from the European Union. Hence, it was decided to "proceed to the second phase of negotiations on the transition regime and the framework of future relations with the United Kingdom", explained Mariano Rajoy, who reaffirmed his intention to establish a close partnership with this country once it has withdrawn from the EU.

The President of the Government added that "the work will be guided by a very clear goal: to offer certainty and security to citizens and economic operators".

Ordinary European Council

The President of the Government outlined the agreements adopted at the last European Council of the year held on Thursday and Friday. In this regard, he pointed out that by activating Permanent Structured Cooperation (PESCO), "we will improve our defence capabilities and our readiness for military operations".

He highlighted that "NATO will also benefit" from these improvements, "strengthening its European pillar, which continues to be a key element in our collective defence. Spain wishes to build European Defence to the benefit of NATO".

Spain heads up this group, according to the President of the Government and "will continue working with the other three co-sponsors of PESCO on initiatives on European defence". This will be manifested, he announced, "through specific projects which will benefit our defence industry".

Along the same lines, Mariano Rajoy underlined that "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".

Social dimension, education and culture

Pool Moncloa/ Diego CrespoThe European Council continued with the debates that began at the Social Summit held in Gothenburg on 17 November. Mariano Rajoy pointed out that "after overcoming the economic crisis, the top priority must now be citizens in the current reflection process on the future of Europe", and to provide responses to their concerns.

The European partners addressed the Action Plan to tackle the wage gap between men and women for the period 2018-2019. On this point, Mariano Rajoy stressed that this gap has fallen in Spain in recent years by four points and "now stands below the European average and at a record low".

Dialogue on education and culture, developed according to the agreements reached at the Tallinn Summit on 28 September, focused on a series of initiatives aimed at improving mobility and exchanges between young people and students, such as the additional backing for the Erasmus Plus Programme. Mariano Rajoy remarked that "Spain is the country to receive the most Erasmus students and has held this leading position every year since 2001".

Climate change

The European Council positively valued the Climate Change Summit held in Paris on Tuesday. The President of the Government stressed that "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 its commitments for the year 2030, it is drafting the Climate Change and Energy Transition Act".

Migratory policy

Mariano Rajoy once again committed to the strengthening 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 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", argued the President of the Government.

Current affairs

Pool Moncloa/ Diego CrespoThe President of the Government confirmed that Spain will present its candidature to the Vice-Presidency of the European Central Bank, although he did not mention any specific names.

When asked about the situation of Gibraltar after the United Kingdom leaves the European Union, Mariano Rajoy clarified 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", and hopes that this will also be applied during the transition period.

On another note, the President of the Government defended the application of Article 155 of the Constitution in Catalonia because he believes that "this has been proportional and reasonable". An exceptional response was provided to an exceptional situation but exceptional measures should not persist for an excessive period".

He also declared that the surveys are telling us that "what some people announced was widespread support for the independence of Catalonia is quite simply a lie and that the irresponsibility shown by some people has caused a tremendous rift in Catalan society".

The President of the Government trusts 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 the rulings handed down by the courts".

Non official translation