Speeches by Chancellor of the Federal Republic of Germany and the President of the Government at close of the Germany-Spain Business Meeting

Berlin

Ms. Merkel.- Mr President of the Government, dear Mariano; ministers, Mr Rosell, Mr Garamendi, Mr Grillo, Mr Kramer, ladies and gentlemen,

Thank you for what we have just been presented with as the conclusions of the meeting between Spanish and German business leaders, which shows the level of close cooperation that prevails. This Business Summit also spoke about the strength of economic relations between Spain and Germany. I am impressed by the high level and by the number of participants, and I believe that we can say that these are truly real and constructive relations, not only between the two States, but also between companies, and this can only strengthen our friendship.

Exactly three years ago, a very similar summit was held in Madrid. The economic environment was difficult. Spain was one of the countries that had to resort to an assistance programme and adopt and undertake a series of necessary, yet unpopular measures. At that time, we wanted to say that reforms are not an end in themselves, but rather a means to increasing competitiveness.

The President of the Government, Mariano Rajoy, always said that he faced two challenges: growth and job creation. In the last three years, Spain has worked to achieve these two goals and it has done so successfully.

In our talks yesterday and today, we have obviously spoken about the results of this raft of reforms and of the course these reforms has taken and you can see, and this is clear, that the path undertaken has led to positive results. The assistance programme is now a thing of the past. Spain has a growth rate above 3% this year and is one of the countries in Europe and in the Eurozone to enjoy most growth. I believe that Germany should use this as an example.

Among the most important challenges was the high number of unemployed and that is why it is cause for satisfaction that Spain is now among the Eurozone countries which has lowered its unemployment rate most in the last year. The rate of youth unemployment clearly remains too high. The companies here have commented that there is also a responsibility on the part of small- and medium-sized enterprises, and that they are always trying to give perspective to the young people.

Here in Germany, we know that above all for these young people, that it is hard to find a job when they lack practical training, because we have said on many occasions that there are many university students in Germany, but that does not always lead to the goal of finding a job. That is why I welcome the fact that the Spanish Government opted for more practical vocational training and that many German companies have taken on this major commitment in Spain. This is something truly worthy of mention and I would like to thank them for this commitment.

German companies are some of the main investors in Spain. In 2013, total investment in Spain amounted to 25 billion euros and bilateral trade has also been developing in a very positive manner over the last three years to amount to a total of 60 billion euros, and this upward trend has been confirmed at the start of 2015: both German exports to Spain and vice versa, have once again risen.

In other words, German companies count on Spain and they positively assess the perspectives offered to them in Spain: the reforms of recent years are bearing fruit, unit labour costs have dropped, there is more international competitiveness and the financial sector has been restructured, which - as I already mentioned in the press conference - has also lead to a renewed increase in the volume of credit available, which is important for a dynamic economy.

The success of countries like Spain, and also Portugal and Ireland, shows that European support programmes have been the right choice for these countries to take; in other words, the link between solidarity, on the one hand, and responsibility - the measures taken by each country - are, in reality, two sides of the same coin. This new assistance programme for Greece is based on these foundations.

Ladies and gentlemen,

I have said on many occasions, and I would like to highlight this, that the Euro is much more than a single currency. It is the economic, symbolic and political expression of our close ties within the European Union and, together with the single market, is the foundation of our common prosperity. The European crisis and the debt crisis have brought to light certain weak points. In the last few years, we have managed to attain certain objectives but we still haven't reached the end of the road. We must continue talking about the future development of the Economic and Monetary Union, and we must always compare our progress with our international partners, look where our possibilities to be competitive lie and see where we can make adjustments to become more competitive.

Beyond merely exiting the present crisis, we must guarantee that the Eurozone countries can also be competitive at an international level. To that end, it is important to decide how we wish to form and improve the structure of the Economic and Monetary Union. Budgetary figures in themselves are not enough; we need to have a comparative competitiveness and make similar investments.

We are convinced here in Germany that things will only go well in the long term if things go well in Europe because we are so interconnected. That is why we want Europe to come out of the debt crisis stronger and for Spain to continue down its successful path. Of course it plays an important role because it is the fourth largest economy in the Eurozone; in other words, it plays a central role.

Dear Mariano,

At our joint press conference three years ago in Madrid you said, and I quote, "our reforms are not only necessary for Spain, but also for Europe". I say to you that back then you were right and today Spain is a friend and a partner. Contact between our two countries is truly very good - I also say this to you after yesterday - not only in terms of political cooperation, but also in many other areas of society. Today's conference is another example of this. I believe that our two countries can benefit from this contact.

I would hence like to thank the organisers of this Business Summit and congratulate them on having organised this event. As regards the presentation of the Spain Brand, which will take place this afternoon in Potsdamer Platz, I would, of course, like to wish you every success in this presentation. Looking at the number of Germans who go on holiday to Spain, who appreciate your country and who really have a great deal of affection for it, this will help remind you that we, the Germans, wish Spain every success.

Thank you for inviting me to this meeting.

President of the Government.- Madam Chancellor, dear Angela; ministers, presidents of the business organisations, chairmen and CEOs of companies, ladies and gentlemen,

For me it is a pleasure to address some words to you at this Business Summit and I thank you for inviting me here today.
Perhaps some of you will remember that I had the honour of speaking at this forum on another occasion; I, of course, remember this very well. As mentioned earlier it was back in 2012, when my country was going through the worst ravages of an economic crisis aggravated by the turbulence in Europe surrounding the future of the Euro. Today I can talk to you under circumstances which, fortunately, are radically different. Many things have changed and right now I will not go in to all of them in detail. It suffices to say that in 2012 Spain was still immersed in a profound recession, manifested in its crudest form in the intolerable unemployment figures, and in 2012 the whole of Europe still had doubts surrounding the irreversibility of our major achievement: the single currency, our currency, the Euro.

Three years on, no-one has any doubts regarding the irreversibility of the Euro and my country, which headed up the table in terms of shedding jobs and the negative growth of the economy, is now growing at 3% annually and generating more than half of the jobs that are being created in Europe. So, it is clear that many things have changed.

While back in 2012 I set out the broad strokes of my reformist project for Spain, today, in 2015, I can speak to you about the fruits being reaped from these reforms, which back then had barely started to be set in motion. And believe me, in 2012 it was a pleasure to attend this Business Meeting; but today, as you will appreciate, the pleasure and joy are heightened further still. And rightly so.

I would like to highlight as well that among the many things that have changed, some things still remain, and they are untouchable. One is the firm pro-European commitment of our people and, of course, of the Government of Spain, which constitutes one of our noblest intellectual and political traditions, and which has been a guiding principle in the worst times of the crisis. Another is the deep-rooted community of values, convictions and interests that the German and Spanish people share.

Just a few short months ago, we commemorated the thirtieth anniversary of the signing of the Treaty of Accession of Spain to the European Communities. Signing that treaty was the moment when the dreams of generations of Spaniards became a reality and Germany played a very important role in making that possible. Without the commitment of your country to Spain in the European Council in Stuttgart in 1983, our participation in the European project would very probably have suffered a major setback. Since then, and regardless of the colours of the different governments in power, Germany and Spain have shown their conviction and their pro-European responsibility. And this profound pro-European harmony between our two countries is, at the same time, a reflection and mainstay of an even higher reality: the declared affinity and deep-rooted ties that bind the people of Spain and Germany, both socially, culturally and economically.

Ladies and gentlemen,

Here in attendance, as we are, at a Business Summit, I would like to elaborate today on the economic backbone of our relations, which are going through a particularly buoyant time. That is what I am going to talk about here today, but not without thanking the business organisations for the work they have contributed in order for this event to take place and so that companies from both countries can have a forum at which to share their experiences and perspectives on the economy and the future of Europe.

Ladies and gentlemen,

Our companies maintain close ties, as can be seen through the fact that year-after-year Germany remains our leading global supplier and our second leading customer. Our trade exchanges grew last year by 10.9% and this year they are also heading down the same path. A good example of that is that in the first half of this year, bilateral trade hit a new record by exceeding 31.3 billion euros, with Spanish exports to Germany growing at a rate of 10.8% and German exports to our country at a rate of 13%.

Our relations have not only stepped up in terms of trade but also in terms of services. Those years in which Spain exported little more than sun and sand tourism are long gone. In 2014, more than half of the revenue of our country for services was for services other than tourism and travel, such as engineering, consultancy, financial, telecommunications and transport services. In the case of Germany, last year our companies exported non-tourism services to the tune of 4.62 billion euros.

In terms of investment, the latest figures also show strong interrelations between our economies. Germany is the fourth leading investor in Spain, with levels that reached 31.21 billion euros in 2013, and Spain maintains direct investments in Germany of close on 10 billion euros.

So, these figures and this buoyancy can be explained by the good progress being made by our economies and by increasingly greater European integration. In Spain, the change of cycle has been possible thanks to the correction of the imbalances that had accumulated for many years and thanks to the recovery of part of the competitiveness that we had lost, because this is the only way of recovering solid foundations in a monetary union.

The change in pattern of our economy can be clearly seen in the strong increase in exports over our GDP - up nine points in the last five years. At present, Spain exports more than the major advanced economies, only behind Germany.

Ladies and gentlemen,

As I said to you at the beginning of my speech, Spain has applied an ambitious agenda of reforms that has touched on almost every area of our economy; an agenda that sought to recover the lost competitiveness in order to return to growth and job creation, and that is what we have done.

Three years ago I asked for an effort from companies as a fundamental part of society. The whole of society has contributed to Spain's change of situation, including our companies. And, thanks to these efforts, Spain is today among those countries that is enjoying the highest growth and creating the most jobs in Europe.

It is true that we still have many problems; the most important problem remains the very high levels of unemployment. But it is also true that this situation is heading in the right direction and what we need to do now is persevere. We have set a major national target for the next four years of reaching the figure of 20 million Spaniards affiliated to the social security system, that is, in work. To do this, we need to create 500,000 jobs a year; last year we created 440,000 and the figure this year, in 2015, will reach 600,000. If we persevere with this policy and continue with our structural reforms, there is no reason for Spain not to create 500,000 jobs a year for the next four years.

At any event, although this still remains the main challenge, it is clear that a change in cycle has taken place in the Spanish economy and that, as I have just said, we have gone from a situation of recession, of deficit and of shedding jobs to getting back on to the path of growth and job creation. And I would repeat, what we need to do now is persevere.

The Spanish economy is growing at a good rate: 1% per quarter and 3.1% per year in the second quarter, and for the year as a whole, we hope to grow by 3.3%. In 2012, our first year in government, the Spanish economy fell by 2.1%; in 2013, it fell by 1.2%; in 2014 we grew by 1.4% and this year we are going to grow by 3.3%.

There is another fact that is important: we are enjoying growth and job creation, but with prices at moderate levels and it is the recovery in competitiveness that is the root of the change in pattern of our economy, the same as the foreign trade sector. Exports are hitting new records month-on-month, the same as tourism, which in 2015 will set a new record in the number of inbound tourists to our country: 38 million to July, after reaching a total of 65 million visitors in 2014. More new companies than ever are being set up and all of these positive figures are reflected in the trust placed in our country on an international scale, as shown by the rise in foreign investment of 9.8% last year,

Ladies and gentlemen,

In the whole of this process of recovery and in the consolidation of our growth, Europe has also played a very important role, as has the single currency. Without the Euro, Europe could not be the global economic bloc we all want it to be, and all its Member States have made major political efforts when faced with obstacles. We have made progress on European integration, but we must continue to work to ensure this is completed. In this regard, we have maintained an active and constructive position in Spain, and we have contributed important elements to the debate on the reform of the governance of the Economic and Monetary Union.

The main idea is that in order for a monetary union to work appropriately, it is necessary for certain harmony to exist between the economies of the countries that form part of this union. To achieve this, it is necessary to take steps, little-by-little in the following areas: firstly, in achieving a more integrated internal market: measures must be adopted in areas such as energy, retail banking and the digital agenda, among many others; secondly, it is necessary for our citizens to benefit fully from this internal market and this means, in particular, taking steps on labour mobility; thirdly, we must improve the coordination of economic policies in order to avoid the accumulation of fiscal and external imbalances that endanger the Euro, and to do this new indicators of competitiveness are necessary, as existed in the Maastricht process, which allow Member States to apply economic policies that are compatible with the single currency.

We must also start to discuss Fiscal Union and, in the short term, steps must be taken in the area of tax harmonisation, with initiatives that counter the erosion of tax bases and the artificial transfer of profits, as well as measures to step up the fight against tax fraud.

And all of this must be accompanied by progress on Political Union, which guarantees that the system of governance agreed for the Eurozone respects democratic legitimacy in decision-making processes.

Ladies and gentlemen,

Europe and Spain have both managed to save themselves from one of the toughest times. None of this, however, must allow us a single second of conformism or complacency. As the very history of the European process shows us, only the desire to move forward has allowed us to overcome the challenges we have been faced with along this path.

As you are all aware, the European project as we know it today, took on it first shape through the European Coal and Steel Community. That is the same as saying that the strengthening of economic ties and the generation of jobs and wealth are related to the pro-European dream.

Now, as in the past, private agents and business leaders are those who lead the initiative, day-by-day, in the creation of prosperity in this great space of liberties known as Europe. We are counting on you to continue making progress towards the goal that gives meaning to a whole continent and to a project that is founded on a sound community of shared values.

Ladies and gentlemen, thank you very much for your attention.

Q&A SESSION WITH THE CHANCELLOR OF THE FEDERAL REPUBLIC OF GERMANY AND THE PRESIDENT OF THE GOVERNMENT

Q.- I represent 70% of the SME sector. I am from the north of Westphalia and 80% of our associate companies operate as SMEs in our country. I have a question and a request that I would address to Madam Chancellor. Yesterday, you said on television that we must be a little more Latin-thinking in our approach in Germany. That is a free translation if you will allow me. Perhaps some very technical Directives should be relegated to a second tier looking at the present situation. I simply wanted to ask you about the minimum wage. This has cost us 200,000 jobs in Germany. Suspend this with a certain Latin flexibility.

Mr President of the Government, as a company I only have 65 employees but, I have employed a young French woman of 23 years of age very successfully, who is now working in Germany and is not suffering from the 25% unemployment rate in her country. I am now thinking about employing a Spaniard to then benefit and create a new job in a new market. What do you think about this?

Ms. Merkel.- What I said is that, apart from our German rigour, we also need a certain degree of flexibility. I said this without any form of regional connotation.

I cannot give you the expectation that the minimum wage we have just fixed will change. Of course, we have already made certain modifications to the working day. The debate is ongoing, but the principle of the minimum wage is not going to change.

President of the Government.- The expressions or the words "rigour" and "flexibility" are closely interrelated because flexibility is also an example of rigour.

As regards you hiring a French woman and a Spaniard, that seems great to me. What do you want me to say? It would seem even better to me if you hired more people. As I have tried to point out in my speech, the most important challenge facing Spain at this time is job creation. Between the years 2008 and 2011, 3.4 million jobs were shed in our country. Just look at all the hard work and all the things that still need to be done.

Then, paradoxically, more than 10% of the people who work in Spain are foreigners; there are people from the European Union and people from other parts of the world. But, of course, that is the challenge facing my government. We are fully aware that growth and job creation are what lead to countries forging progress and things improving. In our country we are now seeing how the revenue of the public administration services, despite lowering taxes, is increasing, and it is increasing because there is greater activity and because there are more jobs, and less unemployment, and hence less money needs to be spent on unemployment benefits.

So, it seems to me all well and good what you are doing. I agree with your initial statement regarding SMEs. In Spain as well, some 80% of workers are employed by SMEs. Large corporations also have a major role to play because many small- and medium-sized enterprises also depend on them. But it is true that, in the end, what offers stability to a country, and security and certainty, is an extensive business fabric and, above all, an extensive business fabric of SMEs. Those countries that make progress are those which have companies, because it is companies that create jobs, and what those of us who are engaged in governing countries must do is provide the right conditions so that in relation to these job positions, companies can do things well and with more agility.

Q.- A reflection on the organisation of infrastructures in Spain. The primary aim of Spain of reducing the public deficit has meant the introduction of major reforms in our country which, in turn, has limited public investment in priority infrastructures, such as public equipment, logistics, etc. It should be necessary for the European Union to facilitate the adoption of extraordinary infrastructure plans that have no effect on failing to comply with the public deficit, in particular in countries like Spain, which is meeting its obligations in due time and form.

To that end, and under this perspective, I raise the issue as to what actions you consider should be carried out to make the demands of reducing the public debt more compatible with the aim of re-launching investment in Europe.

President of the Government.- In essence, what you say is correct. In 2011, we had a public deficit in excess of 9%, which meant that we had to resort to the market to request some 90 billion euros, in a situation in which the very existence of the Euro was in question; there was talk of the two-speed Euro, the risk premium in Spain was above 600 basis points and the ten-year bond was being paid off at more than 7%. That was a situation of extreme difficulty.

We have had to reduce the public deficit, because you cannot live with deficit figures like those forever, can you? In fact, in the Budget for next year, for 2016, that we have presented, the deficit target we have proposed is of 2.8% in order to exit the excessive deficit procedure. And they have been fiscal consolidation and structural reforms that have enabled us to come out of this.

It is true that this has generated many problems and many difficulties, because we have had to reduce public spending considerably. In all honesty, there were only two headings where we did not cut spending: the first was pensions and the second was unemployment benefits, and we have had to spend 30 billion euros a year on unemployment benefits. This heading is obviously falling now because new jobs are being created. But even in that situation we still tried to maintain a certain level of public investment. It is true that times are different now, but I was in Galicia last Sunday and, reviewing my notes, in Galicia alone we have invested some 3.5 billion euros in high-speed transport during this term of office, because it was a question of completing the high-speed train line. And in high-speed investment in the "Basque Y", which is another of the main priorities, we have also made a significant investment.

Now, what you have asked, if I have understood correctly, is whether a procedure can be designed whereby investments don't count under the public deficit for the purposes of the European Commission. We have debated this a great deal, and it has also been raised in relation to defence expenses, for example in the situation whereby in order to be present overseas we must invest in defence. Logically this has been another of the headings under which we have had to reduce spending.

I believe that the most important thing, at least that which I have set as a goal following the experience I have acquired over the course of recent years… It is a question of trying to do things well in our country and, if next year we manage to reach a situation where the deficit is below 3% then, henceforth, revenues will increase, investments will be made, jobs will be created and more resources will be generated.

Hence, I believe at this time that is not the most important issue. I believe that the most important thing is pushing on with the reforms - that is the most important thing; in the paper we have been given I have glanced at it briefly and there are various things jotted down there that are important - and if one continues with the reforms and concerns oneself with doing things well, everything else will come later, because they are all short-term issues. If they can be done, that is alright with me. What do you want me to say? What is important is being able to do what needs to be done in your own country.

P.- My name is Ana Botín, from Banco Santander. We are the largest bank in the Eurozone. We have a presence in 10 countries, and 185,000 employees, including Germany, where we have 5,000 employees and 6 million customers.

We have commented before, in a business discussion, that, in addition to thinking about and building the Europe we want in terms of education, infrastructures, the State model and regulation, it is also important to have global European leaders, and today these exist. We have this in various sectors: the financial sector, communications and industry. And my question is very simple; it is whether this is important on the agenda of governments. In terms of Europe, in the new economic model, in this digital world will we be able to have leading companies? That is my first question.

And my second question is - from the business sector - how can we help governments to understand what it is they need to digitalise in order to ensure that companies such as Santander, Telefónica, and Volkswagen can compete, specifically with American companies, in this new environment? How can we help?

Ms. Merkel.- The leaders of Telefónica are pleased.

Q.- This is a question that Cesar would have liked to have asked, but he has delegated it to me.

Ms. Merkel.- Yes, that's okay; he has delegated it to someone else.

Joking apart, the French President, François Hollande, and I held a meeting with the European Round Table and the President of the Commission precisely to discuss this issue of digitalisation and also to exercise pressure in terms of speeding up European legislation. We have a telecommunications package which, at least, heads in the right direction and the Basic Regulation on Data Protection that must now be approved by the competent ministers. In both cases, we must ensure that Parliament acknowledges the need for the digitalisation of data and that it not only sees, in terms of handling data, a problem in relation to protecting these data, but also the possibility of creating new products, new value creating chains.

We have held an intense debate with the European Commission and also with companies in order to say that we need very different rules to make it clear that we see this as a model of growth and in order to come to the right conclusions. This is also a question of the right of public aid, of having a good focus on the perspective of growth and leaders, as you say. Among the major Internet companies, there is no leading European company. As regards industrial production and digitalisation, what we call Digitalisation 4.0 here in Germany, if all those who are currently industrial producers want to become leaders again and not simply the workroom of those companies that shape the numbers, then that is something we must prevent, because the very prosperity of Europe depends upon that.

As Prime Ministers, we have always said at the European Councils, time and again, that the Digital Agenda must be a key issue and we will meet again to discuss this in October. The Commission has tackled many of the proposals made by business leaders and we will continue to do this in Paris in October, and we will do whatever is necessary.

Q.- I represent the German Economic Institute in Cologne. My question is for Mr Rajoy. We have just heard about the importance of European leaders in Spain and in Europe. My question focuses on the other group of companies, on SMEs.

We have been able to hear from Mr Garamendi about the fundamental importance of SMEs for Spain, and hence, both the International Monetary Fund and other organisations say that SMEs in Spain have a very low level of productivity compared with other economies in Europe; not because of a lack of work ethic, which they can be proud of, but for other reasons. And, due to the importance of SMEs for the whole of the Spanish economy, I would like to know what measures you are planning to take to increase the productivity of these companies to make them more competitive.

President of the Government.- There are many measures, which are general economic measures, that benefit everyone: the major corporations, citizens and also small- and medium-sized enterprises. Any circumstance in which there is economic activity and which increases consumption and investment, will clearly benefit SMEs.

I believe that SMEs still undoubtedly suffer many difficulties in Spain. We have taken important decision in recent times, above all on tax issues and in terms of discounts in National Insurance contributions, which are very important. But I truly believe that where we must work hard in the future is, above all, in the field of training.

Nowadays training is key. Spain is a country in which three quarters of its students are in fact university students while only one quarter have studied vocational training. There are many companies in Spain today, large companies, but also small- and medium-sized companies which, paradoxically, in a country with such a high level of unemployment, cannot find qualified workers for certain jobs.

We have implemented, and it is now operating very well and in a short period of time, Dual Vocational Training, something you are very familiar with here; we have come here to see it operating, and also in Austria. These issues will undoubtedly help improve the productivity of small- and medium-sized enterprises. Of course, knowledge is a key issue, and together with skills and know-how leads to progress at the end of the day.

We have also increased the number of Vocational Training students in just three years by a significant amount, and I believe that we have now managed to show Spanish society the idea that if you undertake Vocational Training, this can, in the end, lead to a professional life with a great many work opportunities and with greater possibilities to produce, and hence, to live better.

I believe that the issue of SMEs is fundamentally a problem that requires greater training and more qualifications, aside from decisions of a fiscal nature. We have created flat-rate National Insurance contributions of 50 euros and all those companies that hire workers are exempt from paying for the first 500 euros of salary to the National Insurance. All of this helps, but I believe that the most important issue at this time is training and boosting qualifications.

Q.- I represent the Pharmaceutical Industry Confederation in Germany, Mr President of the Government, one of the key drivers of Spanish industry nowadays, aside from tourism and services, is the construction industry, as I have just read. What plans does the Government of Spain have to increase investment in research and development, in SMEs above all, which are the companies that, in reality, create high quality jobs, rather than falling back into models that aggravated the crisis in 2008?

President of the Government.- The construction in industry in Spain is currently at its lowest ebb. It is true that it has improved a little compared with recent years, but the construction industry has made a very negative contribution to our Gross Domestic Product. However, this year this is not the case - this year the construction industry is recovering and, provided that things are done reasonably well, this is undoubtedly a very positive fact. I, at least, see it this way.

Spain does not live from the construction sector, in the same way that it does not live from tourism. As I said before, we are the second leading European country with the highest percentage of exports compared with our Gross Domestic Product, behind only Germany. And what Spain exports is, firstly, capital goods - that is what we most export - and then, at a considerable distance, and fighting for second place, we have chemical products, the automobile industry and the agri-food industry. And Spain does not only have tourism in its service industry, as I mentioned earlier in my speech; we have a very high level of exports in other types of services. Ours is a very diversified economy. The equivalent of 46% of our GDP is invested by Spanish companies overseas, whereas not long ago that stood at only 5%.

Hence, I cannot accept the claim that Spain lives from the construction industry, above all in recent years, when we have not built anything following the problems we had.

It is quite another matter to say that we need to make an effort in terms of R&D+i. This is undoubtedly fundamental, as is training and qualifications for SMEs and for other companies.

We had to make, as I mentioned before and as is well-known, a great effort at fiscal consolidation and, as I also said before, we have had to reduce all the budgetary headings. But one of the main priorities, both in the Budget for 2015 and for 2016, regarding which I mentioned before that we have already held the full debate, is to recover spending on R&D+i. And we are fully and absolutely aware that a major part of our future is going to be played out in that area because, in the end, those who innovate, through know-how and knowledge, are those who will come out on top.

Hence, this is one of the government's main priorities. We couldn't deal with this back in 2012 and 2013 as we would have wanted to, just as in the same way we couldn't attend to so many other budgetary items that were important.

But, I repeat in relation to the construction industry, that is not true. We do not live from construction, this has dropped off considerably in recent years and Spain is a country, I repeat, with a very diversified economy. And therefore the first thing we export is capital goods, which are manufactured in our country.