"Spain has managed to overcome the worst of the crisis without seriously prejudicing our social welfare system", says Mariano Rajoy

Moncloa Palace, Madrid

Mariano Rajoy took stock of 2014 following the last meeting of the Council of Ministers, at which measures were approved to support the financial sustainability of the regional governments and local authorities, pensions were raised and the rise in the Minimum Inter-professional Wage was confirmed, and declared that this is the "first Christmas of recovery in terms of employment, economic growth and activity".

In this regard, the President of the Government stressed that 550,000 jobs have been created and, without including the figures for December, 338,000 more people are making National Insurance contributions. "Following seven years of crisis and consecutive falls, for the first time since 2007, this year net jobs have been created in Spain. This is the most important change and marks a before and after. We have gone from shedding jobs to creating them, from increasing unemployment to reducing it".

The President of the Government also stressed that between January and November 71,500 new companies have been incorporated in Spain. "The net creation of companies is increasing at a rate of almost 5% on last year and 10% when compared with 2011". The Spanish economy has gained 2.3% in competitiveness thanks to the reforms. Exports represent 34% of GDP and are ahead of countries such as the United States, Japan, France, Italy and the United Kingdom, he added.

Mariano Rajoy highlighted that inflation has been controlled to end the year as a whole at zero. This has helped us gain competitiveness in exports and maintain the purchasing power of salaries and social benefits, which has a great social component. In this respect, he remarked that in 2014, "pensions, far from being reduced or frozen, have gained somewhat in purchasing power, and other income, with consumer prices in decline over the last few months, have also gained ground".

Growth with sound bases

Pool MoncloaThe President of the Government claimed that, from a prudent perspective, he can state that "Spain is growing with sound bases, well above the European average" and that if the favourable conditions are maintained at an international level, "2015 will be a very good year for our economy". "If 2012 was the year of adjustments, and 2013 the year of reforms, 2014 has been the year of recovery and 2015 will be the year of the definitive take-off of our economy", he stressed.

In barely three years, he argued, the Spanish people have managed to turn the situation and the image of the country around. "Where a lack of confidence previously prevailed, there is now security. Where previously jobs were being systematically shed, we can now see an ongoing and ever-increasing process of job creation and recovery in National Insurance contributions. Whereas the economy shrank by 1.2% last year, this year it has grown by 1.3% or 1.4%, according to data from the Bank of Spain. In other words, a volte face of more than 2.5%".

"All the indicators of our economy point to us having passed through the worst and now is the time to harvest the fruit of so much effort. Now is when we must not lower our guard, nor take any backward steps. We cannot endanger this recovery that has started, which no-one can deny", he commented.

Social policy

Pool MoncloaAccording to the President of the Government, Spain has managed to overcome the worst phase of the crisis without seriously prejudicing our social welfare system. More than half of the cost contained in the General State Budget, almost 54%, goes on social costs.

"While other countries have been forced to cut pensions by between 10% and 15% on average, more is now being paid out in pensions in Spain than before the start of the crisis and we have not been forced to make these cuts. In 2014, 400,000 more pensions are being paid than in 2011, and next year we will allocate more than 360 million euros per day to pensions to reach a record figure of close on 132 billion euros in total", he announced.

As regards unemployment benefits, Mariano Rajoy pointed out that the definitive figures corresponding to last year exceeded 30 billion euros, in other words 82.5 million euros per day. He also highlighted that the policies to help drive job creation will rise by 16.5% next year, as a result of the Social Agreement to Activate Employment reached between the government and the social stakeholders.

Moreover, the President of the Government underlined the social aspect of the tax reform that will come into force on 1 January, which will result in a general reduction in taxes of 12.5%, and will principally benefit those people on the lowest incomes. "This tax reform will not only put 9 billion euros into taxpayers' pockets, but I believe it will also give a definitive drive to economic growth and to the business competitiveness of our country".

Europe/UN

Mariano Rajoy considers that it is very important for Spain to have been awarded the position of the European Commissioner for Energy and Climate Change and that Spanish proposals, such as regarding energy interconnections have been taken on as priorities within EU policy. He also highlighted that banking union has now been set up and the foundations have been laid for the economic reactivation plan presented by the President of the European Commission, Jean-Claude Juncker.

As regards Spain's image abroad, he stressed the country's el26:Balance2014ection to form part of the United Nations Security Council as a non-permanent member for the next two years.

Corruption

The President of the Government said that the concerns voiced by the Spanish people over the cases related to corruption are "logical, justified and shared by the government", which has offered "a comprehensive and ambitious response".

In this regard, he recalled that the government has presented Parliament with a "broad package of administrative and legislative measures", and that a fortnight ago the Transparency Portal was started up, "which establishes a new form of relationship between citizens and public authorities".

Catalonia

Pool MoncloaThe reformist work of this year and in this term of office has been possible, said the President of the Government, thanks to political and institutional stability. "I advocate and will continue to advocate that stability is a virtue that helps society make progress, provides citizens and companies with security and certainty and limits the framework for differences between different political formations".

In relation to Catalonia, Mariano Rajoy said that he regrets "the irresponsible conduct of some of its political leaders" who have abandoned the priority of resolving problems and attending to the well-being of their citizens.

"The Government of Spain will continue to look out for the interests of the citizens of Catalonia, support its companies, work to ensure that recovery is felt there as quickly as possible and provide harmony and understanding among the people of Catalonia", he stressed.

The President of the Government reiterated that he is prepared to talk about anything except "the unity of Spain or do anything that goes towards dismantling national sovereignty or indeed anything else that affects the equality of the Spanish people, fundamental rights or liberties".

Furthermore, the President of the Government underlined that the renewal of the Head of State took place in an "exemplary fashion". He acknowledged the commitment of Don Juan Carlos to the Spanish people and the "excellent performance of the duties" of Don Felipe.

On another note, he congratulated the Spanish healthcare workers who were able to tackle such a serious crisis as Ebola". "We all welcome the fact that Teresa Romero is alive and that no-one else caught the disease. This also shows the level of our healthcare system and the commitment of its professionals, something we can all feel proud of".

Current affairs

Pool MoncloaIn response to interest from journalists in his opinion on the new political map coming out of surveys following the emergence of a new political force, the President of the Government called for "stability" to be valued. He pointed out that since the approval of the Spanish Constitution, the major political forces have governed in Spain either under a majority or in coalition and that during this time we have been "one of the four countries in the world to have enjoyed the greatest increase in the well-being of its citizens".

That is what happens in the "great countries in the world where people are better off", he added, and when this stops happening "other things emerge that generate instability and above all, a lack of progress, steps backwards and a loss of well-being".

The President of the Government described the approval on Friday of the agreements adopted at the latest Fiscal and Financial Policy Council as a decision of "tremendous importance that benefits the people of Spain as a whole". Henceforth, "the State will take charge of all debt maturities, market debt and bank debt, and will take charge of the whole deficit being accumulated by regional governments". The State, he continued, will become "the sole agent to resort to the markets to request financing", which will result in a very significant saving for the Spanish people as a whole and a major relief for the regional governments in general.

According to Mariano Rajoy, the message is that Spain is a "supportive State", that helps everyone out, particularly in the times of greatest difficulty, and "will work to better address the key major public services, such as healthcare and education".