The Government of Spain approves the first two measures of the Action Plan for Democracy

Moncloa Palace, Madrid

The Minister for the Presidency, Justice and Parliamentary Relations, Félix Bolaños, the Minister for Education, Vocational Training and Sports and Government Spokesperson, Pilar Alegría, and the Minister for Economy, Trade and Enterprise, Carlos Cuerpo (Pool Moncloa / Jose Manuel Álvarez)

The Minister for the Presidency, Justice and Parliamentary Relations, Félix Bolaños, has explained that the Council of Ministers has approved the Statute of the Independent Whistleblower Protection Authority and the expansion and modification of the staff of the Public Prosecution Service. These are the first two initiatives of the Action Plan for Democracy, which contains 31 measures to fight corruption, strengthen the means to prosecute crime and facilitate cooperation with the judiciary.

During his appearance, Bolaños reiterated that the Executive wants to send a clear and forceful message to Spanish society: "The Government does not tolerate corruption of any kind and is therefore strengthening the means to investigate and prosecute crimes."

Independent Whistleblower Protection Authority

Félix Bolaños stressed that this figure culminates the implementation of an EU directive and is created to guarantee the protection of people who report regulatory infringements and any cases of corruption.

The independent authority has functional autonomy and acts independently of the Government and any other public administration, the minister said. Neither its staff, nor its president, nor its members may receive instructions from the public administration, the Government or any other institution.

The minister pointed out that any citizen who becomes aware of a crime or irregularity has an additional channel to file a complaint anonymously and with guarantees. The authority will make the appropriate investigations and, if it considers the complaint to be credible, will pass it on to the Public Prosecution Service.

Bolaños stressed that "the authority will take the measures it deems appropriate to protect the complainant from any reprisals." In addition, support measures, such as legal and psychological counselling, and even financial assistance if needed, will be available. "The Independent Authority is a guarantee for the protection of informants, it is a key institutional pillar in the fight against corruption, as established by the European Union and Spain, and it is a guarantee for the integrity of the behaviour of public administrations," the minister remarked.

The authority will process information related to the General State Administration, to the entire state public sector and to the constitutional bodies that, while not part of the General State Administration, do belong to the institutional architecture. It may also hear complaints involving private entities, provided that they are related to activities carried out in more than one autonomous community.

The Independent Authority will coordinate all independent authorities that the communities will have to set up in their territories and all existing or new monitoring bodies.

Expansion of staff in the Public Prosecution Service

The Minister for the Presidency, Justice and Parliamentary Relations, Félix Bolaños, during the press conference after the Council of Ministers | Pool Moncloa / Jose Manuel Álvarez

Félix Bolaños also reported on the expansion and modification of the staff of the Public Prosecution Service in order to improve its effectiveness in the prosecution of crime. A total of 79 positions for prosecutors are created, all of them at second level, with the exception of two prosecutors' offices to fight public and private corruption: The Public Prosecutor's Office for Crimes against Public Administration and the Public Prosecutor's Office for Economic Crimes.

In addition, the Government has created six specialised positions for sex-based violence prosecutors in Almería, Malaga, Dos Hermanas, Las Palmas de Gran Canaria, Valencia and Pamplona. And it supports the Campo de Gibraltar with the creation of new posts in Cádiz and Algeciras.

Pardon for key whistleblower in the Gürtel plot

The Executive has also today approved the Royal Decree granting a partial pardon to José Luis Peñas, the former Majadahonda councillor who filed the complaint that led to the start of the investigation into the Gürtel corruption scheme.

"The message we are sending with this pardon is very strong: those who collaborate with Justice have the support of the Government of Spain, those who collaborate to pursue crime, to prosecute crimes, have the recognition and support of the Government," said Félix Bolaños.

Business information on sustainability

The Minister for Economy, Trade and Enterprise, Carlos Cuerpo, during the press conference after the Council of Ministers | Pool Moncloa / Jose Manuel Álvarez

The Council of Ministers has approved the referral of the Draft Law on Corporate Information on Sustainability to Parliament, which represents a step forwards in terms of corporate transparency and corporate social responsibility. The text, which was tabled in May 2023, transposes European regulations to improve the submission and verification of companies' non-financial information.

The Minister for Economy, Trade and Enterprise, Carlos Cuerpo, said that the regulation improves the transparency of companies on environmental, social, human rights, governance and anti-corruption issues. Companies will have to report on how these elements affect their business.

Cuerpo added that the verification of companies' sustainability reports may be carried out by an independent entity or by the company's own auditor, who will be subject to the supervision of the Spanish Accounting and Auditing Institute (ICAC).

"We want our companies to be able to cope with this need to provide additional information without placing an undue burden on them," the minister said.

In this regard, the economy minister announced that the regulation will be applied to large and medium-sized companies and business groups and will come into force in stages between this year and 2025. Small companies will not have to produce a sustainability report, unless they are listed: "We would be talking about 16 SMEs, to give you an idea of the importance of the SME exemption." However, the minister has advised SMEs to provide this information voluntarily so that they can gradually adjust to European regulations.

Modification of company size thresholds

The Government has submitted the preliminary draft law updating the criteria for the size of companies or groups of companies to consider them as small, medium or large. The future regulation is a transposition of a European directive included in the Green Deal.

Carlos Cuerpo has announced that the size thresholds are increased by 25% in line with the evolution of inflation in recent years. As a result, some companies classified as large companies will be classified as medium-sized companies, which will simplify their accounting obligations.

According to the minister, the measures approved today represent a step forward in complying with the European Union's Green Deal regulations. They improve the sustainability reporting of our entire business community, try to minimise the administrative burden for our companies and help them to be more competitive in an environment of increased environmental, social and human rights compliance requirements.

Report on Treasury borrowing in 2023

The Minister for Economy, Trade and Enterprise presented a report on the Treasury's borrowing policy in 2023. The document shows that the net issuance of financing fell by 5 billion euros in 2023 thanks to the dynamism of the economy and, according to the Government's forecasts, it will fall by a further 10 billion euros in 2024.

The minister explained that the gradual reduction in net issues has taken place thanks to the good evolution of economic growth and, therefore, to the good evolution of revenues, tax bases, economic activity and employment, and also thanks to the good evolution of the public deficit.

Moreover, Carlos Cuerpo indicated that in recent years the average life of the debt portfolio has been extended to eight years: "The fact that we have a portfolio with an average life of eight years means that each year we will refinance only 12-13% of the total portfolio."

The refinancing risk, the minister stressed, is very low, so that we can face an increase in interest rates by the European Central Bank with a very moderate increase in the cost of our debt. In this respect, Cuerpo pointed out that the cost of outstanding debt increased by just 45 basis points in 2023 from the 2021 low, one tenth of the European Central Bank's rate hike.

The minister reported that the interest burden on Gross Domestic Product or revenue has remained contained. He also indicated that, thanks to the Treasury's prudent financial policy, the withdrawal of the European Central Bank's stimuli is compatible with a strong attraction of non-resident and foreign investors, who have confidence in the evolution of the Spanish economy.

"We have managed to reduce the debt by the end of 2024 by around 20 percentage points of GDP from its peak in 2021 and we will continue in the coming years with a path of reducing our debt-to-GDP ratio in an environment of assured sustainability for our public accounts and for our debt", concluded the economy minister.

New edition of the Imserso Thermalism Programme

The Minister for Education, Vocational Training and Sports and Government Spokesperson, Pilar Alegría, during her speech at the press conference after the Council of Ministers | Pool Moncloa / Jose Manuel Álvarez

In the area of Social Rights, the Minister for Education, Vocational Training and Sports and Government Spokesperson, Pilar Alegría, announced that the Council of Ministers has approved the contracting of the Imserso Thermalism Programme for 2025. The minister informed that the new season of this initiative will start on 1 February 2025 and will offer 190,000 places for pensioners in a total of 84 spas throughout the country.

To this end, the Ministry of Social Rights, Consumer Affairs and 2030 Agenda has increased the investment for this programme by 2 million euros compared to last year, allocating more than 34 million euros for this purpose. Furthermore, the Imserso points out that the contract includes the possibility of an extension for an additional year to ensure its viability for the next two years.

To participate in this programme, created in 1989 with the aim of facilitating access to thermal treatments, it is necessary to be a Social Security retirement or permanent disability pensioner, or a widow or widower aged 55 or over. This initiative is also aimed at those who are pensioners for other reasons or receive unemployment benefits or subsidies, aged 60 or over, as well as those who are insured or beneficiaries of Social Security, aged 65 or over.

Appointment of the new Spanish ambassador to Argentina

Pilar Alegría has announced that the Council of Ministers has approved the appointment of Spain's new ambassador to Argentina, Joaquín María de Aristegui Laborde. The minister explained that this appointment was made "out of a commitment to the utmost mutual institutional and political respect between the two countries" and "with the common goal of the well-being of our citizens."

"Spain and Argentina are brotherly peoples," the spokesperson continued, "we are united by deep ties, both human and social, a common language and culture and important economic exchanges." For this reason, the minister pointed out, "institutional relations must always be commensurate with the intensity of the ties that unite our societies."

In answers to questions from the media on the return of the Spanish ambassador to Buenos Aires after the withdrawal announced on 21 May, Pilar Alegría also made reference to the joint communiqué of the Spanish Ministry of Foreign Affairs, European Union and Cooperation and the Argentinian Ministry of Foreign Affairs, in which both commit to "strengthening" their relationship.

Current affairs: President's trip to India and Spain's Ballon d'Or

The Minister for the Presidency, Justice and Parliamentary Relations, Félix Bolaños, the Minister for Education, Vocational Training and Sports, Pilar Alegría, and the Minister for Economy, Trade and Enterprise, Carlos Cuerpo, at the press conference | Pool Moncloa / Jose Manuel Álvarez

Pilar Alegría began her speech by recalling the president of the Government of Spain's trip to India this week, during which Pedro Sánchez inaugurated a business meeting with the aim of identifying business opportunities for Spain. Alegría also stressed that the Airbus and TATA plant inaugurated by the head of the Executive together with the Indian Prime Minister, Narendra Modi, will boost the manufacture of 40 new aircraft, with 16 to be assembled at the Airbus plant in Seville, which "will have a very positive impact on employment in our country."

Finally, the minister for sport celebrated the awarding of the Ballon d'Or to Spanish footballers Rodrigo Hernández - "Rodri" - and Aitana Bonmatí. The minister congratulated the two players and their respective clubs, as well as Jennifer Hermoso and Lamine Yamal, also winners at the awards ceremony held yesterday in Paris, which, according to the minister, "demonstrates the enormous and magnificent power that Spanish football enjoys."

Non official translation