Speech by the President of the Government at the Americas Society

Madam President, members, ladies and gentlemen,

I feel greatly honoured to have been given this opportunity to address such an important and select representation of North American society and its Hispanic community. I thank these prestigious institutions for inviting me here to speak, on this very platform from which other distinguished figures and friends have spoken before.

I would like to highlight the work of the Americas Society as a forum dedicated to education, debate and dialogue on the American continent, and to recognise the work of the Americas Council with whose members I share a commitment to economic and social development, market freedom, the rule of law and democracy throughout the western hemisphere. Both institutions have made inter-American relations, relations between Latin America, the Caribbean and North America, the subject of their efforts.

I would like to underline the importance of the transatlantic bond between Spain, Europe and the United States. My government is firmly convinced of just how important that relationship is. Latin America also forms a part of this fundamental pillar in the West because it shares the same values of democracy and freedom that are essential to any form of prosperity.

This bond is being called upon to remain a key part in the international relations of the 21st Century. If it is the case that this bond has been limited to transatlantic relations until now, in the 21st Century it must become ever more open to the Pacific. Let us not forget that this continent was a fortunate and unexpected encounter on an adventure towards the Far East.

More than ever, globalisation has transformed Latin America into a nexus between two oceans, new markets and millions of people. In the 21st Century, it is a bridge to an expanding East and offers an effective triangulation with Europe and Asia as an increasingly stable platform for reaching new markets.

Ladies and gentlemen,

It is now, more than ever, necessary to set goals and establish targets. The reforms we are implementing in Spain and Europe are a means to guaranteeing the European project, especially its single currency, restoring confidence in the markets and making Europe a region with a competitive, productive and advanced economy. With that in mind, the determination and dedication of my Government to balance the public accounts and add flexibility to the economy will undoubtedly lead to growth and more jobs.

The current circumstances, difficult circumstances, do not distract us from our responsibilities or our objectives. We will overcome this crisis, as we have overcome others in the past. One of the things that we Europeans have always known how to do well is to turn a crisis into an opportunity.

The roots of European integration run deep and there will be no going back on our common project. Admittedly, progress is sometimes slow but it must not be forgotten that the institutions are working, the single market is a great achievement that is generating many benefits and we have very considerable human capital and more innovative potential than we think.

We have come a long way in Europe since the European Economic Community was first created back in 1957, some 55 years ago. We should be proud that we have achieved the longest period of peace, prosperity and union in our history. In order to judge the achievements of these last 55 years in Europe it would suffice to compare this period of history with the 55-year period of history in Europe immediately prior to this.

Therefore, there should be no doubts whatsoever regarding the fact that Europe will emerge stronger and more open to the world, to the United States and to Latin America.

The European Council meeting in June was an extremely important one. A clear desire was expressed by everyone there to continue with the process of European integration. We agreed on a series of commitments and I will be calling for them to be met because the crisis Europe is going through right now is, above all else, a crisis of confidence and there is nothing that inspires more confidence than complying with agreements that are set, and there is nothing that inspires more confidence than to sew the seeds of certainty and nothing that generates more lack of confidence than to sew the seeds of uncertainty.

Ladies and gentlemen,

The reforms being implemented by my Government are aimed at creating a more competitive and more dynamic Spain. The Government of Spain has a clear economic strategy; the Government of Spain also has sound parliamentary stability and more than three years ahead of it to implement the necessary reforms in a determined fashion. We know what we have to do and as we know how, we are doing just that. We also know that it will mean many sacrifices in an evenly distributed manner, because that is how we intend to proceed, borne equally throughout Spanish society.

Allow me, here in New York, to acknowledge the majority of Spaniards who do not demonstrate, who do not appear on the front page of the press and who do not appear on our news broadcasts. While they don't appear there, the vast majority are out there. They are the vast majority of the 47 million people who live in Spain. They are people who are suffering, who are going through enormous difficulty and who have to face many problems.

This vast majority of Spaniards are working, those who can, and are giving the best of themselves to achieve the great national objective to which we are all dedicated, which is to emerge from this economic crisis. If they are rising, as they are rising, to the gravity of the situation, I believe that those of us who hold public office, those of us in Government, in the rest of the public administration services, in the political parties - those that support the Government and those in the opposition - the media and the trade unions, I believe that if the people are rising to the situation, we should all rise to the stature of Spanish society and not destroy the greatness of the behaviour of our compatriots with short-term interests.

Ladies and gentlemen,

My Government's strategy is based on two pillars: fiscal consolidation and structural reforms to improve the flexibility and competitiveness of the economy. Both pillars are essential to our commitment to the Euro. On the issue of fiscal discipline, we are implementing an ambitious consolidation programme that will enable our public accounts to be cleaned up very soon. Believe me when I say it isn't easy because it is not easy to reduce a public deficit by 2.6% in one year when we are in recession and having financing problems.

That said, all the public administration services are involved in that greater fiscal streamlining effort: from Central Government to the Regional Governments and the Local Authorities.

In terms of structural reforms, I should highlight the additional flexibility provided by the labour reform, the cleaning up of our financial system and the increased openness and liberalisation of our goods and services markets. All this will contribute to increased growth and the creation of jobs, while guaranteeing the quality of our products and improved levels of wellbeing. This must be the target for any sensible government.

Both the International Monetary Fund and the European Union have recognised the magnitude of the effort being made. Even so, there still exists a perception of Spain's image that does not correspond to the reality in my country.

Ladies and gentlemen,

Spain is a great country and I am optimistic. We have an open, sound and competitive economy. Spain is the fourth-largest economy in the Eurozone. Our gains in productivity and competitiveness, and salary moderation are enabling us to rapidly improve our current account balance. Our trade balance has already swung into the black with the Eurozone. This has never happened before and this surplus has multiplied five-fold in the first half of this year, 2012.

Spanish companies opened up to the world years ago and are now competing in all kinds of markets. Spain is one of the top ten countries in terms of foreign investment. 50% of all infrastructure concessions around the world are managed by Spanish companies. By way of example, I can tell you that a consortium of twelve Spanish companies is responsible in the Middle East for the most significant infrastructure project in the Arab world in recent decades: the high-speed railway line between Mecca and Medina, a project worth some ten billion dollars.

A number of examples can also be taken from the Americas. In total, accumulated investment by Spain in America exceeds 160 billion euros: 116 billion in Latin America and almost 44 billion in North America. 2,600,000 jobs in America are generated by Spanish companies. 2,600,000 jobs in America are generated by Spanish companies; most of them in Latin America, over 2,300,000, but almost 300,000 of them are in North America.

The United States was the leading recipient of direct Spanish overseas investment in 2008, 2009 and 2010. Important investment by Spanish companies can be found here. In the field of renewable energy, for example, a Spanish company was awarded the construction in Arizona of the largest solar power plant in the world and partnerships exist on technologically advanced projects, such as the partnership with NASA on the current Curiosity mission to Mars.

The widening of the Panama Canal is another of these iconic projects on this continent that is being led by a Spanish company.

Together with the United States, Spain is a benchmark investor in Latin America. A large part of that investment was made in the early 1990s, when the outlook for the region was not so promising.

Furthermore, Spanish companies have the intention to remain where they are. They are reinvesting the profits obtained and are applying ambitious corporate social responsibility programmes.

I would also like to point out that, in spite of the financial difficulties present in the international environment, the commitment made by Spanish companies to Latin America has not diminished but in fact increased and has shown, despite the difficulty and setbacks, itself to have been the right thing to do.

For that reason, I think that every opportunity offered by the new Free Trade Agreements signed by the European Union, which Spain has promoted, with Colombia and Peru on the one hand, and the Partnership Agreement with Central America and the already existing agreements with Mexico and Chile, should be taken. We must increase our trade exchanges and foster even more investment, but in both directions because Europe is also an opportunity for America.

Ladies and gentlemen,

The Latin America of the 21st Century has little in common with that of the 20th Century. There was a certain pessimism surrounding Latin America at the end of the last century. People were speaking of "lost decades". Today, however, there is renewed optimism about the region. Latin America is not peripheral but rather central. The region has experienced several years of important transformation in all areas. It is more democratic and stable today, it is more cohesive from a social point of view, the economy is experiencing a period of growth and new integration processes have been embarked upon.

In terms of economic growth, this no longer only includes Brazil and Mexico among the emerging powers. In reality, they are now emerged powers. When talking about new burgeoning powers, the latest benchmark studies now include another Latin American country; Colombia, which simply confirms the rise of these medium-sized powers.

This increased dynamic in Latin America is also strengthened by the new agreement and integration processes. The Community of Latin American and Caribbean States, the Union of South American Nations and the Pacific Alliance represent unquestionable progress.

I would like to highlight the latter, currently formed by Mexico, Colombia, Peru and Chile. This alliance combines legal security with open trade and a focus on Asia. The Pacific Alliance looks to Asia but is not closed to others, nor aims to rival anyone. It does not seek easy rhetoric but rather efficient pragmatism. They are the countries in Latin America with the most free trade among them and, in fact, the main condition for joining the alliance is to have treaties with all its Member States that maintain and expand this area of free trade and confidence for investment. Furthermore, all these countries already count on Free Trade Agreements with both the European Union and the United States. They are the countries that are developing all the policies in which Spain believes and seeks to promote.

It is highly positive and confidence inspiring to see how the decisive nature of political institutions and clear, predictable rules are recognised because the wealth of nations depends on those factors, at least in the long term. In the 21st Century, our institutions are just as important as technological change for economic and social development. With reliable institutions based on predictable rules, economic growth is strengthened because it can flow more easily throughout the economy.

Ladies and gentlemen,

I am firmly convinced of the need for renewed relations with Latin America. Because of that, I attribute great importance to the Ibero-American Summit in Cadiz, which will be held in November. It will undoubtedly be an unbeatable opportunity to enjoy open, sincere and direct political debate between the Heads of State and Government of Latin America, Portugal and Spain.

My Government believes in building relationships with everyone, relationships of equality, mutual respect for the internal democratic processes of each country, according to the will of the people, with a focus on the future and always remembering that there is much more that unites us than could possibly separate us.

Relations between Spain and Latin America are special because of our historical and cultural ties and because of the significance gained by Spanish investment. Our relations are therefore multidimensional and closely linked to the identity of the countries involved. 1,100,000 Spaniards live in Latin America. Our relations with Latin American countries therefore have certain highly important aspects. Another characteristic of Spain's relationship with Latin American are the relations with every single country, with no exception based on nationality or politics.

I speak of renewed relations with Latin America but, of course, I also include the United States in this process. Spain is a reliable and solid ally against the increasingly complex global challenges.

We are allies, both within the framework of NATO and in various coalitions and operations over the course of recent decades. But we are more than that, we are natural partners. We work together on many things and we can continue working together in many regions of the world.

That relationship with the United States would not achieve its true dimension were a certain essential element of the 21st Century North American society not included; I refer, of course, to its Hispanic community, a dynamic and plural community both in composition and in circumstance that shares daily challenges with its US compatriots and the ideals of the American dream that has made this country the land of opportunity; a community of Hispanics that come from the rest of America but also from Spain, and that is adding value to the United States with its political, economic, scientific, cultural, sports and even gastronomic drive, overcoming frontiers and glass ceilings, and that is every increasingly influential and more decisive.

All this has led them to create new benchmark centres throughout the Americas, enabling the United States to approach the world with a renewed outlook. Miami, among other cities, is an original mix of its American condition with Latin American influences. The Hispanic world owes a great deal to the United States but it is also true to say that the United States owes a lot to the Latin community.

We Spanish were the first Europeans to emigrate to America and bring western civilisation and values to this continent. We are, at the same time, the Hispanics of Europe and, therefore, the main pillar of relations between Europe and this continent that stretches down from Newfoundland in the north to Tierra de Fuego in the south.

This common past is clearly a strong bond, as we can see through the current commemoration of the second centenary of the Spanish Constitution of 1812. This was the first Atlantic Charter, the first Constitution that, in Spanish, embodied the common dream of freedom that was born in these lands in 1776 and in which we also took part; a Magna Carta written by European Hispanics for American Spaniards.

The idea of freedom was first written in English and, through the Spanish Constitution of 1812, now in Spanish, influenced Latin America and more than a few European Constitutions.

We are convinced that the strength of our historic relationship will help us strengthen our ties in the future and project them together into the future. We are a community of interests and shared values on both sides of the Atlantic, and all things "Hispanic" are what breathe life into this natural association. For that reason, I intend to continue strengthening the growing exchanges between our countries through the bonds of culture.

Today more than ever, at the dawn of this 21st Century, English and Spanish are the two great communication languages of globalisation. There is no room for rivalry. One must speak both languages to operate in any cultural or economic space in this world.

I am convinced that language is a powerful bond of union between our countries. Second only to Mexico, the United States is the country with the most Spanish speakers in the world, more than in Spain itself. This is unquestionably positive because if culture has political value, it also has economic value. The momentum of our audiovisual and publishing industries, which generate annual revenue of more than a billion dollars in exports for Spain alone, is a demonstration of the role to be played by language as an economic asset and source of opportunity.

Ladies and gentlemen,

My Government has made its relations with the United States one of the top priorities in foreign policy.

Spain is firmly committed to the future of the United States when it strengthens ties with its Hispanic community, a politically significant community and decisive in terms of population, a community of economic development and cultural wealth for the future of this nation and, something I would like to underline, in the perception of all things Hispanic in the rest of the world.

The Hispanic community in the United States is synonymous today with the weight of history and the cutting edge spirit. All things "Hispanic" have a past that has given rise to a future full of opportunities. Hispanic people are a dynamic, vital community that is keen to prosper and with stories of success that have enhanced the United States under the auspices of freedom, human rights, respect for private property and the rule of law.

To claim its Hispanic cultural inheritance is to express the plurality and diversity that we admire in the United States. The best way Spain can guarantee its ties with the Hispanic community is through strengthened relations with the United States.

America is a fundamental part of Spanish life. Latin America is the central core of our foreign policy and a constant in terms of State policy; but that promising launch pad is not enough for me.

Strengthening and promoting relations between Spain, Latin America and the United States represents an essential path for the foreign policy of my Government. Consolidating the Spain-America-Asia triangle is, in actual fact, a 21st Century challenge.
There is a great deal of talk in Spain about the need for "more Europe". I would reply that there is also a need for "more America".

I believe that America must be a renewed and permanent commitment. And I will continue to focus my efforts on achieving just that.

Thank you very much.