Media appearance by the President of the Government of Spain after his meeting with HM the King

Marivent Palace, Palma (Mallorca)

APPEARANCE BEFORE THE MEDIA BY THE PRESIDENT OF THE GOVERNMENT OF SPAIN, PEDRO SÁNCHEZ

Good afternoon, and first of all, thank you to the media for attending this press conference, which is now a tradition in the office held by His Majesty the King on this beautiful island and in this beautiful setting of Marivent Palace.

The issues we have discussed in the office are the ones that, shall we say, have been at the forefront of current affairs in recent days. First of all, we have talked about the economic situation our country is going through, which I believe is frankly positive, especially if we compare it with other economies around us, in Europe, and beyond, given the complex international scenario the world is going through.

I believe that the data from the National Accounts for this past quarter invites optimism. We have seen the International Monetary Fund once again forecast Spain as the fastest growing major economy, or large European economy, for the second year in a row in Europe. Its forecast is 2.5%. The year-on-year growth in the latest data from the National Accounts is 2.8%. The Government of Spain's forecasts are for 2.6% growth this year, which is accompanied, as you know, by strong growth in job creation. We have seen how that barrier we had of 20 million employed people, 21 million employed people, now stands at 22,200,000 employed people in our country, with unemployment rates of 10% that we have not seen since 2008, that is, since before the financial crisis, and also when we talk about temporary employment and, therefore, the stability of the jobs that are created.

To give us an idea, in year-on-year terms, the growth in employment has been 580,000 during the last year, which demonstrates not only the vigour, but also the dynamism of an economy that is resisting all the onslaughts coming from abroad given the international complexity that Europe and the world are going through and which has an impact on Spain.

This is one of the first subjects that His Majesty the King and I discussed in the office. The second is related to the fact that this growth in a country whose main challenge continues to be inequality and which is probably most dramatically reflected in child poverty, which continues to affect millions of children in our country, but also, on a much more global scale, in the impossibility for many citizens to have access to housing, whether to rent or to buy, which may be one of the main challenges facing the citizens of the Balearic Islands, has also been the subject of the meeting with His Majesty the King.

It is true that there is still a great deal to be done in the area of inequality, but it is also true that in recent years we have made great progress, and we now have inequality rates that we have not had for 15 years, and also poverty rates that are at historic lows, regardless of the fact that inequality continues to be the main challenge facing our country, and therefore also justifies our government's action.

And finally, we talked about the international scenario of the international agenda.

You know that last week I was in Latin America, in Chile, in Paraguay, in Uruguay. I have informed His Majesty the King about this trip, and also about the bilateral summit we had in Mauritania, with a country that is an ally, for example, in the fight against illegal trafficking in human beings. And, of course, we have talked about all European policy and logically also about the trade agreement that was reached yesterday between the European Union and the United States and also the position of the Government of Spain with regard to other trade agreements that we hope can be reached in the future and which are of great and particular interest to Spain, such as, for example, the agreement between the European Union and Mercosur to create the largest free trade area in the world, if this important trade agreement finally materialises before the end of this year.

Well, these have been the issues we have dealt with: the economy, we have dealt with social cohesion, we have dealt with the international agenda, we have logically also talked about the issues, the decisions we have approved in this last Council of Ministers, where I believe the main headline is this social advance, once again, in the area of paternity and maternity leave, where I believe we are taking another step forwards, above all and especially designed for single-parent families, practically all or a very large majority of whom are women, mothers, who will benefit from this extension of paternity and maternity leave.

And with that, if you please, Alfredo, I would be available to the media to answer your questions, with just one last comment. I believe that all this positive development of the Spanish economy, the creation of employment, the policies we are implementing to redistribute wealth and therefore reduce inequality, which continues to be the main source of concern for the Government of Spain, and an international agenda where Spain projects, I believe, a coherent policy of respect for international law, whether in Gaza or in Ukraine, and without a doubt also of openness and twinning with other trade blocs such as Mercosur, I believe that they invite, and this is what I would like to say to end this brief introduction, optimism and confidence about the possibilities and the social economic moment that our country is experiencing, so positive and especially if we look at it in relative terms, with other economies that are very close to us and that also belong to the European project.

And with this, Alfredo, I am available for the media.

QUESTIONS FROM THE MEDIA

Lucía Yeste (RNE): Hello, Mr President, good afternoon. The Supreme Court today decided to send the Crown Prosecutor of the State to the dock.

Do you believe that the time has come for Álvaro García Ortiz to resign in order to preserve the prestige of this high institution, the Public Prosecutor's Office? And if you will allow me to ask a second question, after these days you will take a holiday, we imagine like many Spaniards, will you take advantage of it to rest, logically, and perhaps also to reflect on a possible change in your government in September? In other words, will your cabinet ministers be able to go on holiday in peace and quiet too?

Response: Thank you, thank you very much, Lucia. With regard to the first question, I believe that the Council of Ministers has already stated its position at the press conference. We support the action of the Crown Prosecutor of the State, we believe in his innocence and therefore, he has the backing and support of the Government of Spain.

And in relation to the second question, it is always a bit difficult, because if I say yes, you won't believe me and if I say no, you won't believe me either. But I believe that the Government of Spain and all the ministers are doing an extraordinary job, at a very complex time such as the one the world, Europe and therefore Spain are going through. The data is there.

We are not talking about abstract things, we are talking about the good functioning of the economy, the strong increase in job creation in our country, the reform policies we are implementing in areas as diverse as, for example, energy transformation, as well as social policies. Today, without going any further, also in terms of strategic autonomy policy, with the support given by the Government of Spain through SEPI to an important company such as Talgo. In short, as I said yesterday, there is a lot of work ahead, a lot of legislature ahead, and of course each and every one of the ministers of the progressive coalition government has my recognition, my respect and my support. Therefore, the answer is that there will be no government crisis. Now, this does not mean, as your colleagues did yesterday, that you will not ask me or any of your colleagues again in the future about it, because it obviously falls within the, shall we say, the logic of the relationship between journalists and, in this case, the government.

Nekane Domblás (Última Hora): Hello, Mr President, good afternoon, welcome to the Balearic Islands. Once again I ask the question myself, but I want to make it clear that it is on behalf of all my fellow journalists in the Balearic Islands. Following the meeting I had with President Marga Prohens, she made a series of statements at the press conference, she launched a cry for help on immigration, as she said, because she said that the Balearic Islands can no longer bear the arrival of minors from the Canary Islands and she asked for help for the minors who arrive, for the migrants who arrive in small boats. She also spoke of the possibility of requesting co-management of the airport to regulate the flow of tourists to the Balearic Islands. She also spoke, very briefly, about financing, but basically she also spoke about the road agreement, about the possibility of her collaboration in the development of road works that are planned here in the Balearic Islands that are not AVES, because here the territory is limited and it is not difficult to obtain profitable financing. This would be the question. I would like to know your opinion of what the president has said. And if you will allow me an extra ball: today the BOE publishes that this issue, which is very important for the citizens of the Balearic Islands, has not been discussed, the BOE publishes that some cities in Spain, A Coruña, San Sebastián, some cities in Navarre, have agreed to declare a housing emergency so that the price of rents on the islands can be limited. I don't know if you would encourage the president of the Balearic Islands to do the same here, given that the Balearic Islands is currently the region with the highest house prices in Spain, something that I don't think neither you talked about in your meeting nor the president.

Response: Well, let's see if I remember all the questions. The first on immigration. What I would like to say to you is that the Government of Spain has had a structured policy on immigration for seven years now, which has five pillars.

The first is related to border control and increasing the reception capacity of migratory flows. The second is related to boosting regular legal migration as opposed to irregular migration. The third is related to integration policies, which are very necessary and which, in the case of the Balearic Islands, are in the hands and are the responsibility not only of the Government, but also of the Councils and the town councils themselves. The fourth is related to the fact that this is a phenomenon that affects the whole of Europe and, therefore, it is a European policy, and under the Spanish presidency of the European Union in 2023 we achieved a great immigration and asylum pact that must be complied with by all Member States. And finally, what we have to do is to cooperate at source with those source and transit countries of that migration. And that is what the Government of Spain is doing on all fronts. And in fact, in aggregate terms, what we are seeing is a downwards trend, a 27% drop in irregular migration flows compared to last year in Spain as a whole; a 27% drop. It is true that this is not happening on the route that affects the Balearic Islands and one of the issues that I have discussed with the president of the Balearic Islands is that we will make a diplomatic effort with those source and transit countries and effectively stop this irregular migration at source. That is the commitment I have made to the president. I have also told the president that the law is complied with and the governments, in this case the regional governments, have to comply with the law and the legislative chamber, the Parliament, approved an amendment to the Foreigners Law that is quite clear regarding the solidarity that all regional governments must have with those, in this case those islands, in this case the Canary Islands, and not only those that suffer this extra migratory pressure and therefore have to comply with the law. Sectoral conferences have taken place.

The Government of Spain has put more economic resources on the table - in the case of the Balearic Islands, around 2 million euros to be able to meet this requirement - but I have been clear with the president on this matter, and I am clear with all the presidents and regional presidents who make migration and these minors an issue of politics and confrontation with the Government of Spain: the law is there to be complied with and a party that is a State party has to comply with the law.

And those regional governments that refuse to do so will not be complying with the law and will logically have to be aware of the consequences of this issue.

The second question you asked me is about airports.

Well, what I said to the president was not, as you said, about co-determination. The law is a law that has been in force for many, many years, even before I became president of the Government of Spain, with the People's Party, with Mariano Rajoy as President of the Government. AENA has had what are called autonomous coordination commissions in place for a long time now, and therefore, what I have said to President Prohens is that we are open to strengthening these autonomous coordination commissions between the Government of the Balearic Islands in this case and AENA, to see how cooperation between AENA and, in this case, the Government of the Balearic Islands, can be strengthened and improved. No problem there.

The third question you ask me is about housing and of course I think that, let me put it another way. When we came to the war in Ukraine there was a spike in inflation to over 10% as a result of the increase in the price of gas and the price of electricity. And we said then that it was a market that didn't work. And we went to Brussels and said that we had to change the energy model, that we had to change the energy regulation, that we had to intervene from the public sector, a market that was clearly not working and that was causing us to have inflation of more than 10% in the case of Spain, with absolutely exorbitant energy prices. And we succeeded. We achieved the Iberian solution. We made it so that right now in Spain we have an electricity price that is 30% cheaper than the European average. And that is synonymous with competitiveness, attracting investment, economic growth, and an electricity bill for households, businesses and industries that other economies do not have. Why? Because we have intervened in a market that was clearly not working. Well, we will have to do the same for the housing market. That is what the Housing Law is - enabling the public authorities to intervene in a market that clearly does not obey the logic of supply and demand. We have a conception on the part of some regional governments that see how their citizens are suffering an absolutely exorbitant increase in the price of housing, a neoliberal conception of non-intervention from the public sector, and this is what we have been doing for 40 years in this country. We have passed a housing law, which is the mechanism that local councils, regional governments and the Government of Spain have to intervene in the housing market, and the regional governments say no. Why? Because of an ideological issue? But what they cannot afford is to continue as they are, with house price increases, as they are doing. Therefore, I call on city councils and governments to put aside their ideological issues and use the tools that the state gives them to intervene in a market that is clearly not working. And it is the same thing we have done with the energy market and with the price of electricity, intervening from the public sector. And what is the result? Lowering of these prices. Those cities, those autonomous communities that have begun to make use of these limitations provided for in the Housing Law are beginning to see how the price of rents is falling. Why isn't it done here? Because of a political, ideological issue? Well, let them explain it to the citizens. But they have the tools, the instruments, and therefore, I believe that it has little to do with the citizens and nothing to do with questions that logically cannot be assumed to be followed as they are being followed by these administrations, as if these mechanisms did not exist at the public level.

Therefore, I believe that it is common sense that if you have used a type of policy that has not worked for many years and the State provides you with tools and instruments to be able to intervene thanks to this Housing Law, then I think it is good and common sense to start using these tools, because where they are being used, they start to work. And I believe that this is the line to take, and not precisely others that are unfortunately being followed by the Government of the Balearic Islands and many others in Spain.

And the last question was about the roads agreement. I believe that what we have agreed on, and I think it is positive, is this railway agreement, which also implies an economic effort that I believe is demanded and legitimate by the citizens of the Balearic Islands and that the Government of Spain is going to make.

And in general terms, on regional funding, what do you want me to say?

Since I have been president of the Government of Spain, the Balearic Islands have increased their resources from the General State Administration by 60% and with the debt relief that the presidents of the People's Party are saying they do not want, but I am convinced that they will all sign, it will mean a 20% reduction in debt for the Government of the Balearic Islands, and I hope I have not left anything out.

Nekane Domblás (Última Hora).- You have said that those who do not comply with the law will have consequences. I wanted to know what the consequences will be for those who do not comply with the law.

Response: What I am saying is that the law has to be complied with.

And indeed, those who do not comply with the law know what they have to abide by.

Well, thank you very much. Have a good summer and have a good rest. And the truth is that with this weather that you have here today, I think it is one of the few times that I have been here that the temperature was not so pleasant.

Thank you very much and good summer to all of you.

(Transcript edited by the State Secretariat for Communication)