Government develops law to de-index public prices and inflation

Moncloa Palace, Madrid

The government has developed, through a Royal Decree, the Law to De-index the Spanish Economy, approved back in March 2015 with the aim of de-indexing price reviews of goods and services in the public sector from the Consumer Price Index (CPI).

According to the explanation offered by the Government Spokesperson, Íñigo Méndez de Vigo, the intention is for "inflation not to be immediately passed on to certain public prices", among which he mentioned bus and train tickets, motorway tolls, medication and regulated gas and electricity prices. There are certain one-off CPI rises, he argued, but if these public prices automatically increase, they contribute to this rise becoming permanent.

The regulation also sets out certain exceptions allowing indexing and the requirements are established that must be met in these cases.

Íñigo Méndez de Vigo also highlighted that the law excludes pensions, wage bargaining and the issue of public debt from its scope of application.

Institutional campaigns

The Council of Ministers approved the Institutional Advertising and Communication Plan for the General State Administration for 2017, which includes 92 campaigns for a total sum of 70 million euros.

Among the priorities in this area, the Government Spokesperson includes healthy habits, the promotion of citizen rights and obligations, new technologies, infrastructure and transport, tourism and culture. The Ministry of Agriculture and Fisheries, Food and Environmental Affairs is the department that will carry out the highest number of campaigns, 31 in total, and the Ministry of Energy, Tourism and Digital Agenda is scheduled to make the largest investment, at just over 18 million euros.

Fight against drug trafficking

Pool Moncloa/JM CuadradoThe government approved the criteria for this year's distribution of the Fund for Assets Seized from illegal drug trafficking and other related offences.

The goal, pursuant to the law regulating this fund, is for the resources from the disposal of goods seized to be used to step up actions to fight illegal drug trafficking, both at a national level and in regard to international cooperation.

On another note, the Council of Ministers approved the official governmental declaration on the occasion of the "International Day of Zero Tolerance for Female Genital Mutilation", set for 6 February by the World Health Organization.

Íñigo Méndez de Vigo underlined Spain's "firm commitment" and "determination" to eradicate this practice and support victims. This practice is "a violation of human rights and a form of violence against women", he said, which requires public institutions and civil society to foster a social conscience, boost preventive actions and protect "those who suffer this both within Spain and beyond its borders".

International agenda of President of the Government

During his appearance at the press briefing following the Council of Ministers, the Government Spokesperson made certain considerations on Spanish foreign policy. In this regard, he explained that the priorities will continue to be Europe and Latin America.

Spain, he said, "is fully integrated in the European project" and is an "important, respected and reliable" partner. In his opinion, "Europe needs all its Member States to strengthen their unity and their joint action" based on the principles and liberties we all share.

Pool Moncloa/JM CuadradoÍñigo Méndez de Vigo added that Europe faces certain challenges that require joint action by us all, such as overcoming the economic crisis and the challenge of Jihadi terrorism, issues that Spain can help contribute to resolving.

The Government Spokesperson mentioned the President of the Government's participation in the Summit of Heads of State and Government of Southern Europe, held in Lisbon the preceding weekend, and the Malta Summit, on Friday, 3 February, which tackled the issue of migration and the position of the EU Member States on Brexit.

In terms of Spain's commitment to Latin America, Íñigo Méndez de Vigo claimed that "this is beyond any doubt", and is constantly being updated. In this regard, he referred to the phone call held between the President of Mexico, Enrique Peña Nieto, and Mariano Rajoy with the aim of "joining forces in seeking a fair, sensible and reasonable solution to overcoming the present situation between Mexico and the United States".

Legislature of dialogue and culture of pacts

The Government Spokesperson also mentioned "the endorsement, with broad parliamentary support, of three important decree laws" that affect the electricity discount tariff, the implementation of the Youth Guarantee and 'floor clauses'.

Íñigo Méndez de Vigo insisted that "Parliament is the right place to practise political dialogue and that "it is the government's constant intention to build a political majority day-by-day in favour of reforms". In his opinion, we must reflect on what we want to preserve - because it has led to positive results - and analyse what needs changing so that this can be firmed up in reforms.

"If this dialogue does not bring about agreements, it will be the political forces that have to explain why this implicit mandate from the electorate [to reach agreements] has not been respected. This is the time for the culture of pacts, which I believe is very broadly supported by most Spaniards", he said.

Responses to the media

Pool Moncloa/JM CuadradoIn response to a question about the General State Budget, the Government Spokesperson reminded the press that the ceiling on spending received very broad parliamentary support which should now be translated into approval of the public accounts. In this regard, he called on reflection from the political groups, and to not maintain a priori positions and not reject proposals that they have not even seen yet.

Íñigo Méndez de Vigo stressed that "the government seeks to present the Draft Budget" and is talking with other parties to reach agreements on accounts that contribute to political stability and offer a renewed image of Spain in Europe. In this regard, he called for the other parties not to put their own interests against those of the country.
As regards the call for a pro-independence referendum in Catalonia, the minister responded that the government's position is unequivocal, firm and always the same: "dialogue within the law". "We are going to continue fostering dialogue because we believe in dialogue, because we believe it is appropriate at this time and because that is what should be done in civilised societies: talk, dialogue and listen", he said.

In his opinion, "there is tremendous room for dialogue and to talk about the problems that matter to people", and hence the government "has outstretched its hand" to reach agreements, such as those achieved on other issues.