Press Conference by President of the Government

Moncloa Palace, Madrid

President of the Government: Good morning everyone. I am here with you to take stock of this year 2014, which is now almost over.

As you know, the last meeting of the Council of Ministers has just concluded. In it we have approved a number of items, including the decrees on increasing pensions by 0.25% and the minimum wage by 0.5%.

We have also extended the flat rate of 100 euros for National Insurance contributions for permanent contracts by a further three months. The extension applies to companies that offer permanent employment contracts between 1 January 2015 and 31 March of that year.

In addition, we have adopted new financial sustainability measures for the autonomous regions and local authorities. We have also approved a Draft Bill on Auditing and the Agreement on the Foreign Activity Strategy.

With respect to pensions and the minimum wage, I would stress that although the increases are modest, they have a greater effect on purchasing power in terms of the nominal amount, because the inflation rate is now zero or negative. The rise in the minimum wage is in turn similar to the average increases included in the collective agreements between the social stakeholders, which are also at around 0.5% in 2014.

You will find information about all the agreements in the References of the Council of Ministers and if you like we can return to this matter in the follow-up questions.

In taking stock of the year, I'll try to be brief; but it's been a busy year, with many issues that have occupied our interest and which I can't help mentioning, albeit very succinctly.

As you know, our main priority remains the welfare of the Spanish people and that will be the case until we recover the level of welfare taken from us by the economic crisis. In this respect, if you remember a year ago I predicted 2014 would be much better and that forecast has been more than fulfilled.

In the second and third quarters of this year, we have created 550,000 jobs in Spain in terms of the EPA (Labour Force Survey). With the December figures still to come in, the number of people registered in the Social Security system has increased this year by 338,000. Over the last 12 months the number has grown by 2.5%, in other words by over 400,000 people. I am convinced that the figures for December, due to be published in a few days, as you know, will confirm this trend.

As you are aware, employment is a key issue for the Government and in this respect the change recorded in 2014 has been substantial: after seven years of crisis and continuous falls there has been a net creation of jobs for the first time in Spain since 2007. That is the most important change and it marks a turning point. We have gone from shedding jobs to creating them; from increasing unemployment to reducing it.

"Next year, when I appear before you once more, in Spain there will be fewer people unemployed and more people working and paying in to the Social Security system." These are the words I spoke to you 12 months ago. The forecast has been fully confirmed; and it is with that support that today I have the courage to say that on this question of employment that is so crucial for us, 2015 will be a much better year than 2014.

I would also like to point out that each of the figures in the employment statistics is much more than economic data. Each of these figures corresponds to one person. People who have found jobs this year are more satisfied and more confident; but they are also a source of hope for those who have not yet found jobs.

From January to November, 71,500 new companies were incorporated in Spain. The net creation of companies has increased at a rate of almost 5% on last year and 10% compared with 2011. The Social Security system has now recovered many of the companies that had dropped out during the worst time of crisis. Spain has risen by 19 positions in the World Bank report that measures the ease of starting a business and cutting red tape.

The level of competitiveness that our economy has gained thanks to the reforms, of 2.3%, is reflected in the high performance of the foreign trade sector. Spain is one of the developed countries with the most buoyant foreign trade sector. Our exports account for 34% of GDP, well ahead of countries such as the United States, Japan and France, and we are also ahead of Italy and the United Kingdom. Among the G-7 countries, only Germany leads us in export capacity.

The correction of imbalances in our economy has turned us into a major attraction for international investors. We are one of the 10 countries in the world that receive most direct investment and the biggest recipient in Europe.

Finally, I would like to highlight the control of inflation, which has been zero throughout the year. This has two main readings: the first is that for the last 14 months we have reduced our differential against the European Union average and especially against Germany; in other words, we have gained in export competitiveness. Second, stable inflation, as I said earlier, has a huge social component, because it maintains the purchasing power of wages and social benefits. So this year, in 2014, far from being reduced or frozen, pensions have increased their purchasing power and with consumer prices declining in recent months, other income has also benefitted.

In short, as I have already said at some time, this is the first Christmas of the recovery: recovery in terms of jobs, economic growth and activity.

In just three years, the Spanish people have managed to turn the situation and the country's image around. Where once there was mistrust, today we find security; where once jobs were being systematically destroyed, today we see a continuing and growing process of job creating and recovering the levels of National Insurance contributions. Whereas last year the economy shrunk by 1.2%, this year it will have grown by 1.3% or 1.4%, according to data from the Bank of Spain; in other words, a turnaround of over two and a half points.

This is the reality: Spain is growing faster than most of our European partners and is the country that today creates the most jobs in Europe. I know that some find it hard to believe, but that is the reality that nobody can deny.

I would like to stress that we have never fooled the people of Spain with respect to the state of our economy, never. We have not done so either when things were really bad, or now that they are better. We have never lapsed into triumphalism. We have always been prudent and have always wanted reality to correct our forecasts positively and not negatively.

Now we do remain cautious; but from this position of caution I can assure you that Spain is growing economically, growing on a solid foundation and clearly above the European average. I can moreover assure you that if the current favourable international conditions - the euro exchange rates or oil price - remain in place, 2015, which will be a good year, could be a very good year for our economy.

If the year 2012, as I have said a number of times, was the year of adjustment and 2013 was the year of reforms, 2014 has been the year of recovery and 2015 will be the year when our economy finally takes off.

I repeat, this is the first Christmas of recovery; and I say 'first' because there are more to come. We need this momentum to continue over time in order to recover from the consequences left by the crisis in Spanish society. That is also a goal that has been set by my Government.

Ladies and gentlemen, if I am stressing the data on the economy so much that is because they are the pillars of the policies whose goal is the welfare of the Spanish people.

I would like to dwell a moment on the issue of social policy, because I think it is important to contribute data so we do not only hear slogans about this subject.

Spain has overcome the worst stage of the crisis; the worst, without undermining the substance of our system of social protection. More than half the expenditure included in the national budget, almost 54%, is social spending.

Within this chapter, the public pension system deserves a special mention. At the investiture debate, held three years ago now as you no doubt remember, I drew a red line, with respect to the necessary adjustments, on pensions. And so, while other countries have been forced to cut their pensions by an average of between 10% and 15%, in Spain the pensions paid are more and higher than before the crisis began and these cuts did not have to be made. In 2014, 400,000 more pensions are being paid than in 2011 and next year, which begins in a few days, we will dedicate over 360 million euros every day to paying pensions, up to a record figure of around 132 billion.

As for unemployment benefits, the final figures for last year exceeded 30 billion euros, or 82.5 million euros every day to pay unemployment benefits.

And now that we're talking about unemployment I would like to highlight that policies to foster employment will grow next year by 16.5%. This is a result of the Social Agreement to Boost Employment signed a few days ago, in this very room, with representatives of the trade unions and employers' associations. It is an agreement whereby more than 400,000 people will receive help for their effective integration into the labour market. I want to emphasise now what I said then: after so much effort over these three years, Spaniards have gained ground so they can carry out these kinds of policies that bring hope to people. Before we could not implement certain economic programmes; it wasn't possible; now it is possible and that's why we do it.

If I may, I would also like to highlight the important social component involved in the tax reform that will take effect on 1 January. As you know, this reform means a general cut in taxes, of 12.5%, but its main beneficiaries are people on lower incomes: 1,600,000 taxpayers will no longer pay taxes and, starting in January, those with incomes below 12,000 euros will get their wages without any withholding. The average cut for those Spanish people whose incomes do not exceed 24,000 euros will be of 23.5%. In addition, large families and those with disabled dependents will be subject to a negative tax; in other words, they will receive the full allowance, meaning that if their income does not allow them to benefit from the full deduction, they will receive it through a cheque from the government.

I sincerely believe that this tax reform will not only put 9 billion euros into taxpayers' pockets; I think it will provide a definitive boost to economic growth and corporate competitiveness in our country.

Ladies and gentlemen, in this year-end round-up I would also like to mention Europe and the changes that come from there.

For decades, Europe has been the major project that summons and brings together the whole of Spanish society. What was once a dream is today being built step by step, figure by figure, event by event. And this year, the European project has also made substantial progress.

In the wake of the elections and the renewal that they brought to European institutions, Spain got a twin commission of great importance as it deals, neither more nor less, with issues of energy and climate change. I think the experience, knowledge and outlook of Miguel Arias Cañete is the best guarantee of support for the changes that Europe needs to undertake in this area and which are so important to us. In this regard, it is worth noting that the Spanish demands with respect to energy interconnections have been accepted as a priority for EU policies.

This was also the year that has set in motion Banking Union, a fundamental part of the process of European integration and an instrument for ensuring that financial crises such as those we have recently experienced do not recur. Also this year, the foundations of the continent's economic recovery plan have been laid, as presented by the President of the Commission, the new President, Jean Claude Juncker.

I think it's also worth recalling, with respect to the recovery in Spain's international image, the fact that it has come to form part of the United Nations Security Council as a non-permanent member for the next two years. On that Council, Spain will continue to defend the principles on which our coexistence is based: freedom, respect for human rights, democracy and cooperation among nations.

On another front, one of the main concerns of the Spanish people this year has been related to corruption cases. It is a logical and justified concern shared by the government. The accumulation of scandals involving corruption causes social alarm, breaks the trust of citizens in their representatives and extends a shadow of suspicion over all honest politicians.

Since the beginning of its term in office, the government has taken measures to increase control over the activities of political parties and their finances; but this year has seen a comprehensive and ambitious response to address this concern. We have submitted to Parliament a comprehensive package of administrative and legislative measures to extend the fight against corruption and to address the deterioration that these cases are leading to in the confidence of citizens in their institutions. Hence the Criminal Procedure Act, whose reform we have just adopted, the Law on the economic and financial control of political parties, and the Senior Officials' Charter, as well as the amendments that we have just submitted to the Criminal Code. Also, as you know, two weeks ago we launched the Transparency Portal to create a new relationship between citizens and government.

Ladies and gentlemen, all this reform work, which we have carried out throughout this year and this term in office, has been made possible thanks to stability: political stability and institutional stability. This is what has allowed us to move forward on solid ground with the different kinds of reforms we have undertaken.

That is why I support the idea, and will continue to support it, that stability is a virtue which allows societies to make progress, which gives security to people and businesses, and sets out the framework for discrepancies between the different political parties. That is what the stability guaranteed to us by the 1978 Constitution means to me.

As regards Catalonia, I regret that some have abandoned what should be the priority of any leader: to resolve problems rather than create them, and to care for people's welfare. The Government of Spain will continue to look after the interests of the citizens of Catalonia, supporting their businesses, working to ensure that there is strong recovery there too as soon as possible and, of course, promoting harmony and understanding among Catalans.

And talking of institutional stability, I can't bring this round-up of the year to an end without mentioning the exemplary manner in which the transfer of the position of Head of State occurred, also in 2014. I would like to acknowledge, once more, the commitment of King Juan Carlos to the Spanish people for so many years and congratulate King Felipe for the outstanding performance of his duties in these first few months of his reign, as we have seen a few hours ago with his first Christmas message.

And finally I would like to congratulate the Spanish health workers who have managed to cope with the serious crisis of infection by Ebola. We all welcome the fact that Teresa Romero is alive and nobody else has been infected in this outbreak. It also demonstrates the level of our healthcare system and its professionals, something of which we all feel very proud.

I will conclude now. It has been an intense year, a year in which we have continued to work with the primary objective of overcoming the crisis and consolidating the recovery of the economy and welfare of the Spanish people.

All the indicators of our economy show the worst is over. It is now time to reap the rewards of all our efforts. Now is the time when we must not drop our guard or backtrack. We must not jeopardise the recovery, which has begun and which nobody can deny. Backtracking on reforms would be like going back on the road to recovery.

Certainly, much remains to be done; particularly when it comes to restoring hope to the people that the crisis has harmed most. They are now our priority.

I want to thank again all the people of Spain for their courage and responsibility during this year that is drawing to a close, and throughout our term of office. I would like to tell them that they can be proud of their country. If more than sixty million foreigners have come to Spain this year, we must have something good. If governments and the foreign press congratulate us and put us forward as an example, then we must have done some things well between us all.

2012 was a very tough year, the great adjustment; 2013, with the reforms, improved our situation; this year 2014 has been, as we have announced, the year of recovery and 2015 will be the takeoff.

I am now available for any questions you may have.

Q: I would like to address two issues that you referred to in the last part of your speech. One, with respect the King's speech on Catalonia, where he said the issue is not only of economy and interests, but feelings. I wonder if you share this analysis that the debate with Catalonia is, above all, feelings and if you have any plans to recover those feelings of the Catalans.

Second, the appeals you made to stability. It seemed to me that you might be referring to the situation suggested by the polls. All the polls say the next political landscape emerging from the elections will not be like the present. There is an emerging party that could even become the leading party. My question is what strategy do you plan to implement in order to recover all those Spanish people who have lost faith in your party and your government.

President of the Government: Regarding the first question, the words spoken by His Majesty the King seem very good to me, as I think they do to the vast majority of Spanish people; but as President of the Government, I think I should not comment on them or discuss them.

Strategy, as you know, is not something that is usually talked about. What counts are the objectives, measures and results. With respect to strategy ... What I do say is that stability is a value and we all know that. Since we adopted the Constitution in 1978, Spain has been a nation governed by major political parties. Sometimes certain parties were elected, at other times others; sometimes they governed with a majority, at other times in a coalition. Throughout that period of history, Spain was - and I have said so on a number of occasions - one of the four countries in the world where people's welfare increased most. It was a period of stability, with political changes, and I think it was very positive for Spanish people, the best period. And I would certainly defend that stage.

That, moreover, is what happens in the vast majority of countries in the world where people live better, where there is more welfare: in the United States, sometimes the Democrats win and at other times the Republicans; in Germany, it is the Social Democrats or the Christian Democrats; in France, the moderate, centre and democratic right or the centre-left. That's what happens in the big countries in the world ... and in Australia, where we have been recently. When that no longer happens, other things occur that do no more than generate instability and, above all, a lack of progress, reversals and a loss of welfare. And you will understand that I always want the best for my country.

Q: Linked a little to this question and to stability as a value to preserve, there are opinion polls that perhaps suggest a highly fragmented Parliament, but then we'll see what the actual results are; however, a debate has begun on the possibility of a coalition government with the PSOE. Do you see a future horizon of possible collaboration with the PSOE, either in Parliament or forming part of the government after the next elections? And do you see it possible with this leader, with the current Socialist leader, Pedro Sánchez, if in the end he is the party's candidate?

And on another note, we have a 2015 that is purely electoral in nature; there are local and regional elections in May. The other day the president of the People's Party of Madrid said that she was prepared to be the main candidate for the City Council of Madrid and I wanted to know if you are going to pick up that gauntlet.

President of the Government: With respect to the first issue, we can begin to talk about it in a year, when we know the election results. At this point in time you will understand that I have other priorities: first, fundamentally and basically, that of governing, the consolidation of economic recovery and doing what I have indicated in my opening remarks.

On the second issue, it is not something that is on the table right now, nor is it the concern of the President of the Government. This is an issue that the People's Party will speak of, as always, and it will do so when the time comes. Therefore, at this point in time I think there is no need to go into the subject.

Q: I have three very brief questions. First, I wanted to ask if you still believe in the innocence of the Infanta, as you said a year ago, or if you are now beginning to have some doubts.

I also wanted to know and understand why you accepted the resignation of Ana Mato if you are so convinced that her behaviour was not dishonest in any way.

And the third is a very simple question and I'm curious to know if you will answer it or dodge it. The question is, do you want to be candidate for President of the Government again?

President of the Government: I will answer all of them. With respect to the last one, yes. The second I have already explained. And as to the first, I am the President of the Government and I think I should not go into those issues.

Q: There is concern about industrial policy in Spain. Are you planning to modify the system of electricity tariffs and eliminate the auctions?

Secondly, on Monday the last section of the Cantabrian motorway will be opened and I would like you to confirm whether you will attend the event.

President of the Government: Yes indeed, I will be attending the event. With the opening of the Cantabrian motorway on Monday or Tuesday, you will be able to travel on high-capacity highways or motorways from Faro in Portugal to Paris, along the coast. So I think it is an important project on which a major effort has been made in this term of office, which as you know was not one with many budgetary resources; but I think that any commitments, particularly at these most difficult times, must be made by prioritising correctly and choosing projects well.

I think that this highway - and you know the dist¬¬ance from Faro to Paris is certainly no small thing - is very important and I will be there precisely because of its importance and because it has cost a lot. It has been very difficult, it has been delayed and then bad times came from a budgetary point of view; but I'll be there.

Regarding the electricity tariff... Energy prices are competitive elements of the first order. From an economic point of view they are fundamental. The cheaper the price of energy, obviously the better things will be for businesses. They will be able to invest more and generate more welfare and more jobs. They are also important for ordinary people, because one of the biggest expenses all Spanish people have is, for example, the electricity bill.

This has been one of the issues the Government has concerned itself with most over these three years. We came to power in a very difficult situation. The price of electricity had been increasing for eight years at an average of 6.9% per year. What's more, there was the tariff deficit, which had to be paid, amounting to twenty-odd billion euros, which is a truly extraordinary figure.

We had to take some very difficult decisions. I am aware that a very significant part of the sector did not like them; but today we have managed to eliminate the tariff deficit, today we have laid solid foundations for the future and we have ensured that in both 2013 and 2014 the price of electricity has fallen after nine years. The major challenge we now have before us - and there are many in this area - is for the price of electricity to continue to fall. For this to happen there is a key issue which I referred to in my first speech, in passing it is true because I can't go into depth on all the issues; that issue is electricity interconnections.

I hope that in February we will hold a meeting here in Spain between the President of the French Republic, the Prime Minister of Portugal, Mr Jean-Claude Juncker and myself to address this issue once and for all; so that one of the projects in the Juncker Plan will be the electricity interconnections with our neighbouring country. That will undoubtedly be a fundamental step in improving competitiveness in our country.

Q: I had two questions. Leaving aside any agreements, which obviously must be proposed after the elections, I wonder if you now see an attitude in the main opposition party that is satisfactory enough from the point of view of ensuring stability.

As for Catalonia, beyond the obvious fact that the Government must address the needs of the Catalans (we should hope so!), what measures will you take to promote the harmony that you advocate? What are you specifically thinking of doing to that end?

President of the Government: With respect to the first question, some of the things one says can be misinterpreted, so I have no problem with the Socialist Party. The Socialist Party is a great party, it has governed this country for many years. I do not share many of the things they say and do, but that's normal; it's exactly the same for them. But I think it's good that in what are the great affairs of State there is an agreement between the two major parties, as has always happened, and as happens in all the countries I have referred to. In all honesty, I think it's good. I think it's good that there is agreement on foreign policy, on defence policy and, of course, on the major rules of the game governing coexistence among the Spanish people.

I would have liked us to have reached an agreement on the measures we have proposed against corruption; we have put forward some very important ones. Earlier I referred to the Criminal Procedure Act. In the Criminal Procedure Act there are two measures of enormous importance. One is that the investigatory proceedings will be as quick as possible; and another is the creation of an office to retrieve everything that has been the subject of a criminal offence in order to recover the money, to recover what some people have held on to.

Those are very important things and I still believe we can reach an understanding. After that, everything else is in the future.
On the second question, I have already said it on numerous occasions and I've repeated it ad nauseam: I am willing to talk about everything, but do not ask me to talk about the unity of Spain, or to cooperate on doing away with national sovereignty, or do anything that affects the Spanish people's equality, fundamental rights or freedoms. Having said that, I'm willing to talk about anything you ask me.

We are taking decisions of great importance that benefit all the people of Spain. Today we have also adopted what were the resolutions of the last Fiscal and Financial Policy Council. Look, what we adopted today is very valuable, not only from an economic point of view, but it also has a very important value from the point of view of what a nation is, what Spain is. Today we have taken a very important decision that consists of the State taking over all debt maturities - market debt, bank debt. It will take over the entire deficit accumulated by the regional governments; the State will become - and I think this is also very important - the only agent that will seek finance from the markets.

This will mean very significant savings for all the people of Spain. It will mean major savings for all the autonomous regions as a whole. I think this is sending a twin message: there is a supportive State, which helps everyone, especially at times of greatest difficulty; and that will serve, among other things because we're talking about more than two billion euros, to be used on the great basic public services such as health and education.

So what the Government and, in general, all those of us dedicated to politics, must do is educational; explain where each stands. I myself, of course, by trying to solve the problems of all the people as a whole, and I am prepared to talk about everything; but I will not talk about national sovereignty, or the unity of Spain, or the equality of all the Spanish people; because otherwise, I would not be who I am, and at the present time I intend to remain so.

Q: You have given us a round-up of 2014 that, if not triumphal, is, let's say, rather optimistic; but anyway, returning to the opinion polls which my colleague referred to before, how is it that people do not perceive this improvement, the year of recovery? How is it possible, in short, that the People's Party is being abandoned even by some of its traditional voters, so to speak? According to the opinion polls, as I say.

And then you talked about the historic opportunity represented by Spain taking up a non-permanent seat on the UN Security Council for two years. This entry also means a greater role as international spokesperson, greater international presence. I am astonished by the silence maintained by a country like Spain, or the Spanish Government, on the slaughter of Christians in Iraq, which has become a kind of major international policy issue.

President of the Government: I have not made a triumphal round-up of any kind; I made a realistic round-up and I explained what I have stated here in recent years.

I stated in 2012 that things were going badly. It was a very difficult year. We were still struggling at the time to avoid a bailout, our risk premium was still at a colossal figure, there were still many public institutions in Spain that could not resort to the markets, unemployment was still rising in our country and we were still experiencing negative economic growth. That was the year 2012; which, together with 2009, was probably the worst in many years in our country, economically and socially.

In 2013, things went better, but they went badly. Unemployment was still up, though it was luckily no longer growing at the rate of 2012, and growth was also still negative, but -2.1% in 2012 and -1.2% in 2013. I said last year, here, that this year would be better; and look, it has been better: last year economic growth was -1.2% but this year it is 1.3%. In fact, in the last six months in Spain, or the last two quarters, the second and the third, the number of people with a job has grown by 550,000. Look, that's infinitely better than 2013, 2012, 2011, 2010, 2009 or 2008. This year is the best of the past seven years and I can tell you now that next year will be better, and I have to take care of that.

I'm not an opinion poll analyst. We'll see what the people of Spain say; we'll see when the time comes. For now, the opinion polls have their say; but in a democracy it is the citizens as a whole who have to speak and, of course, the principal obligation of the President of the Government is to tell the people of Spain how he sees things, which is what I'm saying here this morning.
In connection with our participation on the United Nations Security Council, I have to remind you that Spain is not on the United Nations Security Council and therefore plays the international role that it plays; but, of course, always in favour of democracy, freedom, human rights and the fundamental rights of people, starting with their life; always.

Q: Fortunately, in these kinds of round-up there is no longer talk of ETA. However, there remains the dissolution of the group and in that sense I wanted to ask what is your opinion about the proposal of the Basque Government for the disarmament of the group and the creation of a specific committee to that end.

President of the Government: I think the final solution of the problem of ETA is mainly tied in with the dissolution of the group. That is what I think, that is what I have repeated ad nauseam and that is how I believe it will be. The best thing for everyone, starting with themselves, is their own dissolution and entry into a stage of normality, peace of mind and concern for the future, knowing that in Spain there are many people who have lost their lives and have lost their basic fundamental rights because of other people who have attacked them and have formed a criminal gang that still exists. What has to be done is to wind it up and disarm.

Q: You have made a couple of references to the Constitution. You have always said that you would accept a constitutional amendment if the opposition proposes something specific. Apart from any such proposal that may arise, I wonder if you believe that a reform of the Constitution could be undertaken in this term of office, in terms of the time remaining.

Secondly, you said "when I appear again next year". I was wondering whether I should understand that the government's term of office will end in December and if there will be elections in 2016 or earlier.

President of the Government: Actually, that was a reference to a quote from myself. I told you that in 2013 I said this and in 2014 I said nothing. Now, having said that, I have no objection to answering your question.

I think the normal period set out in our Constitution should be respected. In other words, elections are held early for two reasons: first, because a government does not have a majority, in which case it is a political reason; and, second, there may be early elections for technical reasons: if the election should be held on 5 September, let's hold it in June, which seems a more reasonable period. But in principle I have no intention of holding early elections; indeed, I think next year is very important to pursue some of the things that I mentioned in my speech and that is why I think that the political situation should be as stable as possible.

In connection with this question, you mention a reform of the Constitution. I am open to everything, although it is true that we have other priorities. Sometimes people say, "you don't want reform". Of course, telling a government that it doesn't want reform when it has implemented the Fiscal Stability Act; labour reform; the restructuring of the whole Spanish financial system; the energy reform about which I was asked, or at least about some side issues related to it; a government which has embarked on the reform of the public administration; reform of the Market Unity Act; which has carried out an education reform ... Look, I think this term of office has been one with an enormous level of reforms.

Today in fact we have adopted a very important reform; because it is very important that, in the end, it is the State that goes to the markets and seeks finance for each and every one of the autonomous regions. That is very important and that is a very clear example of this constitutional spirit of solidarity among all, and I think these things have to be highlighted.

So I think we have to keep undertaking reforms, I am willing to listen to what is said to me; but I'm not going to think about this, because I am not clear about it at this point in time. What I will also not do is say "I want to reform this" and then when I am asked "what do you want to do" then ah! I don't know. Look, I don't think that is very serious.

Q: Mr President of the Government, I wanted to put a little more emphasis on taking stock politically and so I will give you three matters. I would like you to order them according to which you are most concerned about, which you are less concerned by and why, with respect to the coming year. These three issues are: corruption, Catalonia and the rise of the political party Podemos.

President of the Government: We're not going to start a competition here. All the issues, of course, are of concern to me and in fact, I referred to the issue of Catalonia in my speech, I referred to corruption in my speech and I also referred to the welfare of the Spanish people in my speech. Those are the issues that concern me most of course; those to which I referred in my speech, because if I talked about other matters, my speech would be rather strange and God knows what you might think.

Q: A clarification to a previous question. You made it clear to us that you are not thinking of early elections, or that they do not enter your plans, but have you considered holding them in January 2016 instead of November 2015?

And now the questions. A few days or weeks ago you gave a speech to a group of businessmen, in which you said the economic crisis was already past history and received some criticism for it. You will remember because you were accused of triumphalism. Today, however, a rise in the minimum wage has been approved and you call it - I can't remember the precise word you used - modest... the fact is that it is very conservative. So I wonder what led you to take this decision and if there was really no chance to do anything else, because that does not help you get the message across, socially, I suppose.

About Catalonia. A few days ago the President of the Regional Government of Andalusia was here and, when she appeared before reporters, she said that she had told you that she believed you were arriving late and badly in Catalonia, and the only way she thought it possible, as did her party, was through a constitutional reform to break the impasse. I would like to know, if I may, how you answered her.

President of the Government: I asked her to present me with the reform, and I was prepared to consider it; to present me with the reform.

About 2016? Quite frankly, I have not thought about the issue; but, well, it doesn't seem to be the most reasonable course.
With respect to some criticisms, it wasn't just some; I received many afterwards. You've been very generous with me and I appreciate it; that was nice of you. Indeed, I think, in a way, I've answered this question before and what I tried was to explain how I saw things. In 2012 or 2013, some said I was a pessimist, that it was terrible, the things I said ... I said some things that I think are reasonable.

The fact is that Spain is the fastest growing country in the European Union, the Eurozone to be precise. Italy is not growing and we are growing substantially more than France and substantially more than Germany, more than the average for the Eurozone and more than the average for the European Union of twenty-eight. We create more jobs than anyone else in Europe. And the data on competitiveness are improving. Of course, I could talk to you about the number of tourists, which is a record, and about zero inflation. The fact is that things are improving. Now, we are coming out of seven years of crisis with negative economic growth and steady job losses, and you can't recover from all that overnight; but what we have done during this time is lay solid foundations so that this does not happen again; and the effects are already being felt.

Of course, just compare - I do the comparison because it is my duty and I have to see it - how we ended in December 2012 (and I'm not mentioning 2011, because we had only been here for seven days) or how we were in 2011, with a deficit of more than 9%. On 31 December 2012 we were in a very bad situation and in 2013, too. But this is the first year we have grown in the last seven years. That's a positive thing and I think next year - no, not think, state - we will grow more than this year. That is also positive. So you have to tell the truth. At this stage of my life, you must understand that value judgments... But the fact is it's very important.

You have to convey things that are true. In other words, if the Spanish economy is recovering ... I told a group of businessmen, what was I going to tell them for if they already knew? There is a recovery for the first time in many years in tax revenues. For the first time we're raising revenues, because one of the major problems of Spain has been the loss of 70 billion euros in revenues in 2008 and 2009. That is very difficult to recover from and that's what caused this monumental public deficit, and what forced us to take difficult decisions. We were seventy billion euros down. This year revenue is already increasing at just over 4%. That is already a positive development, especially with inflation at zero or below zero as it has been throughout the whole year.

Well, I understand that governments are there to be criticised, among other things; but I think that it's difficult to argue against the fact that the Spanish economy has begun to recover and that many people are already beginning to see it, but there is still much to do before we all see this and that is what I'm working for.

The rise in the minimum wage was even at zero for two years. I think it was 2012 and 2014, but I'm not sure, I could be wrong. I think there was an increase in 2013 and now there is another increase. What were we aiming for above all? First, inflation, which is zero; we have ensured that the average rise in collective agreements signed between trade unions and employers' organisations this year was of 0.5%, zero and a bit; we have considered the general conditions of the economy and, in the end, after listening to everyone, we thought that was the best decision.

However, there is one thing that is very important and that we all need to take into consideration. Just think, there is a country in the world where if it now raises people's wages by 25% it is ruining them, because inflation is still 60%. So what good is it for them that they rise by 25%? The important thing is to have solid growth. If prices fall, wages do not have to rise much and people will be better off, more jobs will be created, we will be more competitive and there will be more welfare. The fact is that these things are not done overnight; but I believe that these policies of low prices and low inflation are very important for our country.

Q: Mr President of the Government, while recognising the achievements at the macro level of the Spanish economy, I really want to insist on the issue of the minimum wage and pensions; because do you think that you can kick-start consumption with a rise of three euros in the minimum wage and two euros in pensions? Above all, will this recovery to the real economy take place in 2015? Will credit flow to small and medium-sized enterprises, which are those that create jobs in this country? That's what I'd like you to answer me; and above all, on the issue of employment, whether 2015 we will not only create jobs but quality jobs.

President of the Government: They will come, they are coming. Just think, when I became head of government, we took over from a government that lost 3,400,000 jobs in its term of office. A total of 550,000 jobs were created in the second and third quarters of this year in Spain. This last quarter will also be good, as will December and 2015 too. So, they are coming and, in fact, the number of people registered in the Social Security system today is 400,000 more than at the same time last year. Those are positive data that should be recognised.

Full-time permanent contracts, I repeat, full-time permanent contracts are growing in Spain at an annual rate of 30%. That is also hard data.

You talk about private consumption. It increased by 2.7% in the third quarter of this year and has posted four successive quarters of growth, after more than 10 quarters of decline.

Interest rates for SMEs are now lower - and I'd like them to come down more - that at the start of this term of office, but look how Spain was financed. When I came to power we were paying over 7 points, 7% for the 10-year bond; now it is 2%. That allows us, among other things, to carry out the operations we have today, which benefits the autonomous regions and, above all, the operation of those public services that depend on the regional governments, in particular health and education.

Car registrations so far this year have risen by 17.3%. Look, something is going a little better. We can't say that nothing is going well here. The number of passengers on high-speed train lines has risen this year by 12% on 2013. There are already some data on recovery in construction and, as I said, tax revenues are growing by over 4%, while inflation has been below zero for many months.

his piece of data on the fall in prices is a very important fact for people; for people above all, but also for the Spanish economy and for Spanish companies, which are more competitive, sell more and can hire more people, because they need to produce.

So that is what is happening in the Spanish economy. We must continue, but if we continue along these lines and with this determination, this next year will be better.

Ladies and gentlemen, thank you and Happy New Year. I hope it proves very good for you all.