Speech by the President of the Government at opening of academic year at College of Europe

Bruges

Mr Mayor of the city of Bruges, Mr Rector of the College of Europe, Mr Chairman of the Administrative Council of the College of Europe and State Secretary for the European Union of the Kingdom of Spain, dear friends,

I would like to begin by thanking the President of the Administrative Council and the Rector for inviting me to take part in the inauguration of academic year 2014-2015 at the College of Europe. I only need to glance at the list of those who have gone before me over the past 64 ceremonies to understand the full magnitude of the honour they have bestowed on me by inviting me to speak before this institution.

Allow me to make a personal comment: my presence at this College of Europe has a special significance because it was founded by one of my compatriots, Don Salvador de Madariaga. More than six decades ago, Salvador de Madariaga, who was both profoundly Galician and Spanish and a passionate pro-European, had a flash of intuition: although the Customs Union and the Internal Market were very important pieces of a project that was starting to take its fledgling steps following the Hague Congress and the declaration by Robert Schuman, he realised that people were the key asset for building Europe.

Madariaga stated -and I quote- that "Europe will not become real until it is real in the minds of its citizens". It was, therefore, necessary to unite people and get them working together to reach a common goal, the very same philosophy that has inspired the work of the College of Europe, both in Bruges and in Natolin, for the last sixty-five years.

Dears friends,

The College of Europe's sixty-fifth entering class of students bears the names of two Italian magistrates, Giovanni Falcone and Paolo Borsellino, whose biographies Rector Monar has so expertly outlined for us. They both embody the brave determination of one of Europe's societies -Italian, in this case-to face up to those who jeopardised freedom.

This brings to mind Don Quixote's beautiful words to his squire: "Freedom, Sancho, is one of the most precious gifts heaven gave to men; [...] for freedom, one can and should risk one's life". Falcone and Borsellino gave their lives to defend our fundamental rights and freedoms, which are the foundations of our project to build Europe. Their sacrifice was not in vain, and the fitting tribute that we pay to them today, two decades after their assassination, perfectly illustrates the admiration that their memory evokes for all of us.

Dear friends,

If the fundamental rights are the cornerstone of this great area of freedom that is the European Union, it is thanks to the fact that they embody one of the guiding principles of our democracies: respect for rule of law.

In the shared political space represented by the European Union, made up of democratic countries, all ideas are valid and all convictions can be defended, provided that they are put forward peacefully and through the legal channels. Respecting this system -the rule of law and the rules of coexistence we have made for ourselves- is an essential requirement of democracy, and there is no place for tricks, shortcuts or stunts.

In the words of the first President of the European Commission, Walter Hallstein, the European Union is a "Community of law", based on rigorous compliance with legality at both a national and a European level; a Community of Law that is closely linked to the raison d'être of the European project, which is none other than integration.

It was created to unite the European citizenry, pool forces and demolish borders, as an antidote to ideologies and movements that aim to separate people and erect new barriers. The internal market; the single currency; the banking union; the area of freedom, security and justice... these are all initiatives that seek to overcome divisions and unite Europe's peoples.

Integration is the sign of the times and the only way we can guarantee our influence and strength in a century as complicated as this one.

A Europe held hostage by secessionist and exclusionary nationalisms runs the risk of being watered down and weakened. We cannot allow this to happen under any circumstances, because we would pay too high a price, affecting the central core of the European project: the integration of States into a community of law and democratic values.

Dear friends,

Back in May, Europe commenced a new political cycle with elections to the European Parliament. This very week, Jean-Claude Juncker and the new Commission received the backing of the majority of that Parliament and will take office on 1 November. Jean-Claude Juncker has been handed the baton by José Manuel Durao Barroso, who has been President of the Commission for ten years in very difficult times. During these years he has had to face many challenges. Today I would like to recognize these efforts.

I would like to highlight the renewed legitimate democracy of the new European Commission, introduced in the Treaty of Lisbon, whereby the President of the Commission was the candidate of the victorious party at the latest European elections, who was subsequently officially appointed by the European Council. His investiture thus took place as a result of the agreement reached by the majority political groupings in the European Parliament in Strasburg.

This renewal of European institutions will continue on 1 December, when former Polish Prime Minister Donald Tusk takes over the Presidency of the European Council. This is a historic event. One of our main institutions is to be presided over by a Polish citizen. Let us not forget that it was only 25 years ago that the Berlin Wall fell, and only ten years ago that the enlargement of the Union sealed the historic reconciliation of Europeans after decades of bloc-based Cold War.

Such is the power of attraction and integration of our shared project, a project that is partly built from economy and trade, but which is fundamentally a political project, undoubtedly the most successful in our common European history; moreover, this is also the perception beyond our common borders.

Allow me to affectionately acknowledge Herman Van Rompuy, who gave his first public address as President of the European Council right here at the College of Europe.On that occasion, Van Rompuy quoted Shakespeare in saying: "There is a tide in the affairs of men. Which, taken at the flood, leads on to fortune". Well then, over these past five years, Van Rompuy has piloted the European ship and weathered the storm, taking advantage of the tide to bring her into safe harbour.

Now that I have mentioned the storm, it is a fitting time to think back to where we were only a few years ago, and where we are today.

Not long ago - I lived through this - the breakdown of the Eurozone and possible disappearance of the single currency were being taken for granted. Today, however, I can assert that we are coming out of one of the most complicated situations seen in Europe since the Second World War. And that's a fact.

Less than three years ago - I repeat just three years - many people saw the bailout of the Spanish economy as inevitable and urged me to resort to this. But I didn't; I didn't because I always had full confidence in the Spanish people's capacity to overcome the crisis. Subsequent events have vindicated those of us who never doubted the determination, work ethic and drive to excel of my fellow Spaniards, who have given their best in the face of adversity.

Europe, and with it Spain, suffered the devastating effects of the systematic, global financial crisis more than other continents. This was because it caught us unprepared: macroeconomic imbalances, gaps in productivity and competitiveness, an absence of reforms, and the lack of an architecture of European institutions able to manage the uneven impact of the crisis. And this was largely the case due to faults in the design of our Economic and Monetary Union, brought into sharp relief by the financial crisis. As Van Rompuy so insightfully remarked, we had to build "a lifeboat at sea", in the middle of the storm, and-I would add-without an instruction manual.

So we rolled up our sleeves and got to work, racing against the clock and under pressure from the markets. And in just three years we have made more progress in establishing European economic governance than over the course of the two preceding decades, as shown by the fiscal compact, banking union, and monetary policies of the European Central Bank.

Today, there is no one who doubts that the euro is here to stay, and that the Eurozone is firmly advancing towards common economic governance.

Having said that, I should add that we still need to undertake further reforms and that these can once again be done on a joint basis. We must return to buoyant growth and generate a new source of job opportunities for European citizens, particularly young people.

More reforms are needed, and, once again, we can do this together. We need to return to robust growth and generate new sources of job opportunities for Europeans, especially young people.

There is still much to be done: we should advance towards greater economic integration, which must go hand in hand with a greater fiscal and political union. This is the Europe we need, and we must continue advancing towards this goal without hesitation.

The prosperity and wellbeing of present and future generations depend on our political resolve to make the Europe of our aspirations a reality.

Dear friends,

Now I want to talk to you about my country; about how it has faced the crisis and how it is back on track to recovery.

In Spain, the economic imbalances suffered by the rest of Europe were coupled with considerable financial leveraging among businesses and families, and, above all, the bursting of the property bubble, with the dramatic outcome of a massive loss of jobs.

With this disconcerting situation as a starting point, my Government decisively embarked on two types of measures: fiscal consolidation, and a package of major structural reforms. The most important of these reforms were: labour market reform; overhauling the financial system; energy sector reform; and market unity, education, public administration and taxation reforms, to mention just some of the most important ones.

The result of this ambitious reform package is that today, barely three years later, we have healthier public accounts, a more productive and competitive economic model and a surplus in our current account in the balance of payments. This has led to a long list of positive economic indicators: a rise in exports, the attraction of direct foreign investment, burgeoning business internationalisation, excellent performance in the tourism sector, a sharp reduction in the risk premium of Spain's debt and low inflation,

All of this has resulted in sustained GDP growth over five consecutive quarters and, most importantly, net job creation and a lower unemployment rate.

Today has seen two pieces of good news in Spain. We all know that bad news always stands out more than good news but today has seen two pieces of good news in Spain. The first, the information announced by the Bank of Spain that the Spanish economy has grown by 0.5% in the third quarter on the previous quarter. This figure means that we maintain the same confidence in the forecasts we made. Economic growth in Spain remains sound, at least and, moreover, it is helping to create jobs, which is the second important and positive piece of news we have been made aware of today, following the announcement of the employment figures for the third quarter. This is the best third quarter employment figure since records began in our country. Net employment has been created and, above all, permanent jobs have been created in the private sector.

I have always said, and I repeat here today, that, despite the unquestionable improvements achieved in the Spanish economy, I will not be satisfied until unemployment figures have been substantially reduced. This is my Government's top priority.

There is still much to do, but I believe that we Spaniards can feel collective pride for what we have achieved up to now with our efforts and sacrifices. The markets, ratings agencies, investors, the European Commission and international financial organisations have all recognised this.

Having said that, I should add that, however much we do, both ourselves and others, we cannot move towards growth and competitiveness on our own. The European Union and its institutions should do more, more quickly and more effectively, to create a true common market that effectively guarantees the free movement of people, services, capital and goods.

Dear friends,

I will briefly try to point out the main objectives, as I see them, for the near future at an EU level.

I'm sure that you'll thank me for speaking of a European policy that is a hot issue right now, and of capital importance for our short- and long-term future.
Firstly, the internal market and, within the internal market, I will refer to only one issue today, because it is an issue that the European Council will tackle in Brussels at the meetings today and tomorrow: a common energy policy for the whole European Union. Allow me to point out to you that Spain has presented, for the debate on this issue at the upcoming European Council, various proposals on this matter which is key for the competitiveness of our economies.

These proposals are based on the following premises:

Realistically speaking, Europe cannot achieve full energy independence, but it can ensure a sufficient level of supply at affordable prices and ensuring environmental sustainability. This must be done through a suitable mix of efficiency, diversification and alternative energy sources within a framework of a true internal energy market. The advantages of diversification, both in terms of sources and of geographic origin and transport routes, are clear and have become more so due to the crisis in Ukraine and the gas crisis.Therefore, progress must be made in completing those energy corridors, and in increasing storage capacity for strategic reserves.

But, most of all, there is no time to lose: we must resolutely embark on a common energy policy and single internal energy market in Europe, creating the necessary points of connection between Member States.

It is an issue of vital interest to the European Union as a whole, a real demand for energy security and our continent's competitiveness. And the key is, we need go no further than our immediate surroundings: the southern Mediterranean.

The South, with its abundant gas reserves, can help Europe to overcome its dependence on gas from the East; it can help Europe at a crucial moment. But in order for energy from the south to flow efficiently to the rest of Europe and offset possible cuts in supply from the east, it is necessary to boost the interconnection infrastructures between the Iberian Peninsula (Spain and Portugal) and the rest of Europe.

The Iberian peninsula, Spain and Portugal, can act as an "energy bridge" between the South and the European Union. To do so, it must stop being an "energy island" and develop, with committed support from the Union's institutions and partners, necessary points of connection. I dare say that there is no quicker, less costly or more effective way of diversifying energy sources and increasing supply security in Europe.

We are not just talking about energy security, but also of preserving the Union's political independence. An informative, transparent internal market would be the best way to guarantee regular supply, facilitate investment decisions, cushion the blows of the global market and generate confidence among generators and consumers.

While we fail to achieve it, Europe will continue to play the game of international competitiveness with one hand tied behind its back. It is entirely up to us whether we are able to play with both hands free. The intelligence to recognise these challenges must be coupled with the will to address them successfully. I am, therefore, glad to hear of President Juncker's decision to drive the creation of an energy union, and make the implementation of a single energy market one of his priorities. He will have Spain's support and resolute backing in this task.

The second priority for now: to strengthen trade ties between the European Union and third countries and blocs of countries. From this viewpoint, the negotiation of the Transatlantic Trade and Investment Partnership (TTIP) between the European Union and the United States is of particular importance.

Our goal is an ambitious, balanced agreement in the areas of market access, regulatory consistence and global rules. Trade and bilateral investments account for 13 million jobs in total on both sides of the Atlantic.

However, there is still significant room for growth: the Agreement is expected to yield annual benefits of 119 billion euros for the EU as a whole and 95 billion euros for the USA.These statistics translate into average additional income of 545 euros per European family of four, and 655 euros per US family.

This presents such a clear challenge and opportunity that Europe should not pass it by. Spain is firmly committed to a solid and fruitful agreement.

Third issue. After the Second World War, an illustrious Belgian statesman, Paul-Henri Spaak, one of the framers of the Treaties de Rome, pointed out that, "in Europe there are no large and small States; there are only small States, although some of them had not realised it yet".

What was then an idea is, today, very obvious. Therefore, Europe must become a sort of "power multiplier" of each of its Member States. Not in vain is the agenda of the European Councils increasingly taken up with geostrategic issues, as is the case of the session that we will be holding in Brussels this very afternoon.To this end, it is necessary that Europe play its role as a global actor, which also involves thinking and acting in global terms.

One of the characteristics of our globalised society is that power is now fragmented and diffused by the proliferation of non-state actors. These actors use the integrated infrastructures of globalisation for their own ends.

In the words of Dr Richard Haass, "nation-states have lost their monopoly on power. (...) Power is now found in many hands and in many places." This is why, today, it is difficult to find a single model able to explain a shifting and unpredictable international scene, one plagued with uncertainties, but also filled with opportunities.

Globalisation has not only transformed power, but also the challenges and threats to security that our societies face. This is because the lifeblood of our society, such as data, communication and energy supply systems, are crucial, highly vulnerable networks.

In sum, the threats are complex, and inter-connected. Terrorism, weapons of mass destruction, organised crime, cybercrime, climate change, underdevelopment and pandemics are all threats that demand ad hoc responses that combine civilian and military means in different proportions.

In Spain we have just experienced a crisis with the first case of Ebola in the European Union. We reacted well, but we have to acknowledge that the unprecedented nature of these threats calls for new efforts aimed at prevention and reform.

The European Union is well situated to respond to these challenges.It has a well-stocked toolbox containing a variety of flexible instruments, combining mediation, diplomacy, trade, development cooperation, humanitarian assistance, and crisis management through civilian missions and military operations. In fact, there is a growing demand in the world for Europe, and the more we do, the more will be asked of us.

Regarding security, Europe should contribute to an effective multilateral global order based on international law and European values, in concert with our allies and friends-first among them, the United States. We have reiterated this in the Declaration approved at the NATO Summit held recently in Wales.

I do not share, therefore, the opinion of those who claim that multilateralism is the illusion of the weak, and that it is always too limited and circumstantial to ever operate as the ruling principle in international relations.

Europe cannot continue to be a "security consumer", nor delegate its security to others.

It should contribute to generating security through collective decisions, speaking with one voice.To this end, we must reinforce our commitment to developing a Common Security and Defence Policy (CSDP) that is effective and credible, as we stated at the European Council of last December.

The future of our democracy, security and prosperity are at stake in the Sahel, the Horn of Africa, the Middle East and to the east of our continent because European values and interests are also and, above all, defended beyond Europe's borders.

Dear friends,

These reflections lead me to deal with the fourth issue, another issue which is, in my opinion, a priority on the European agenda for the years to come.

The globalised world in which we live needs migratory flows, especially towards those countries with an ageing population. This is not only a challenge for countries that, like mine, are on the outer frontier of the EU; rather, it is a challenge with the same impact on all European countries.

A shared space without internal borders, but with a common external border, must be regulated at a European scale, and with European resources. This involves a common immigration policy, including European management of our external borders and a single policy on visas, asylum, and refugees. And all of this with scrupulous respect for all immigrants. And all of this must be accompanied by a dialogue involving the countries of origin and transit, complemented with development policies aimed at improving the quality of life in the countries of origin.

It is inevitable that these immigration processes continue to take place if people cannot live well in their own country. That is, quite simply, inevitable.

Spain's goal, as a Mediterranean country and a member of the European Union, is to create a space of shared prosperity encompassing both shores of the Mediterranean Sea, which should not separate us, but rather, bring Europe closer to Africa.

The European Neighbourhood Policy is based on this logic: if things are going well for our neighbour, our own societies will also benefit. This is why I welcome the timely decision of Jean-Claude Juncker to create a specific position in the new College of Commissioners, with the mandate to manage every aspect of immigration.

I will draw to a close now, dear friends,

Before, I mentioned my own country.I would like to convey to you a conviction, and a commitment.

Spain is one of the great nations on our continent, the fourth largest economy in the Eurozone, one of the five Member States of the European Union with a presence on the G-20 and elected, just a few days ago, as a member of the United Nations Security Council for the period 2015-2016. We were not present at the founding of the European Communities, but since joining up in 1986, we have been at the forefront of the European integration project. This has gone very well for us; at a world level, Spain has seen the fourth highest increase in per capita income in the last 40 years. For this reason, I undertake to maintain this pro-European and reformist drive, to contribute our privileged relations with Ibero-America and the Mediterranean to this European 'acquis', and to make progress on our shared integration project.

Before ending, allow me a moment for a very personal reflection, inspired by the atmosphere of trust that reigns within these walls.

People talk a lot about the issue of a "European identity" able to mobilise belonging and participation in the common European project among the European citizenry. This discussion ties in with that of "legitimacy". Personally, I have the conviction that European identity is based on a European citizenship that is both de jure and de facto. An identity that, as well as being based on a powerful, competitive common market, should also be based on common textbooks, teaching the history of Europe in our schools, mutually recognising our academic titles, and the Erasmus Programme.

But we also build our identity promoting the mobility of people, and guaranteeing the recognition of their labour and healthcare rights wherever they go, and proclaiming a European system of civil rights juxtaposed with the national ones. It is a question of creating collective ties that are not based on historical, ethnic, linguistic, or cultural criteria. These ties must be woven around a free and committed adhesion of our citizens to a series of values and principles founded on democracy and rule of law.

Europe must be based on this idea of a common and democratic citizenship. A citizenship that palpably increases the added value and usefulness of the EU in concrete aspects of Europeans' daily lives.

Dear friends,

The day will come when you will be passed the torch of continuing this exciting adventure of building a strong and united Europe, for the benefit of all, able to respond to your concerns and life aspirations.

The day will come when you will give a new meaning to the concept of what is "possible", combining your vision and ambition with the necessary capacity for consensus-building.

For that reason, I would like to encourage our young people - key players in the project of building Europe - to continue with your apprenticeship and training without your pro-European spirit waning in any way because you will live and breathe Europe throughout your lives. Europe needs educated, idealistic women and men inspired by the values that have made her great, men and women enthusiastic about facing the challenges awaiting us in the 21st century with effectiveness and determination. You are Europe's most valuable asset.

I will finish now. If I have gone on more than usual, and I apologise for doing so, it is because the scale of the European challenge deserves a profound reflection and this has been what I can modestly offer you from Spain. Be very aware that a responsibility of capital importance falls on your shoulders: it will be up to all of you, in future decades, to continue defending the ideals of a strong, united Europe based on values, with a voice and an influence on the international scene.

Europe's future is in your hands, which reassures me greatly.

Thank you very much.