Press conference by the President of the Republic of Guatemala and the President of the Government of Spain

Guatemala City (Guatemala)

Mr. Pérez Molina. Thank you very much indeed. First of all, I would like to once again thank President of the Government Mariano Rajoy for his decision to pay us this visit and agree to the agenda we have prepared for today. As you are aware, we have just concluded a bilateral meeting with the working groups, we will now attend a Summit between Spain and the members and presidents of SICA, after that we will have lunch and, finally, we will attend a meeting between business leaders from the SICA countries and the business leaders from Spain who have accompanied President of the Government Rajoy on this trip.

Firstly, I want to say that we were able to touch on various issues at the bilateral meeting that are of immense importance to us. The first of them relates to the signing this morning of a partnership and cooperation agreement between the Spanish Institute for Foreign Trade and the Ministry of Economic Affairs of Guatemala; an agreement under which a commitment is made to promoting investments between the two countries and ensuring a constant flow of information to see how better progress can be made on trade issues.

Besides that, I want to tell you that we touched on such issues as security - one of the main issues for Spain, as you know, along with the cooperation enjoyed by the country with SICA. This needs to be highlighted and praised. We believe that the cooperation from Spain has been the main partner for the Central American security programme, known as ESCA (the Central America Security Strategy). The main partner in this process has been Spain. This is an issue on which President of the Government Rajoy expressed his desire to continue collaborating with Guatemala and SICA.

I also want to tell you that the issue of security was also mentioned in talks on bilateral issues, those directly linking Spain and Guatemala. The President of the Government of Spain expressed his political will and commitment to continue backing the security system and the progress we have managed to make in this country. In addition to this, he wishes to maintain cooperation with the various projects being undertaken and, within those, the criminal investigation in which Spain has been collaborating directly with Guatemala, as well as the tactics and all the processes that involve preventive policies. That also includes the prevention strategy and policy that we have been implementing with support from Spain.

Furthermore, I would like to tell you that we also spoke about the migration problems that occurred last year and that the Alliance for Prosperity Plan brought this into discussion. We spoke about it, I had the opportunity to provide the President of the Government with some details on how the plan is developing and he will explain the position he has adopted himself.

Basically, the President of the Government is also interested in the issues of economic integration in the region. I told him how the Customs Union is developing and he told us that we have all the backing necessary to keep moving forward with the economic integration process and especially the sound progress made for a customs union between SICA member states.

I would like to finish by not only thanking President of the Government Rajoy but also by congratulating him on all the work he has successfully completed in Spain; where we all know that, following an economic crisis, Spain has already begun posting important growth of a similar nature to that seen before the crisis. Spain is the second country in the European Union to have taken this important step and is the EU economy posting the second-largest growth. The forecasts are also good for this year, in which the Spanish economy is expected to grow by more than 2.2% or 2.4%, which just goes to show that - regardless of the bad times and difficult years in which Mariano Rajoy took office as President of the Government of Spain - we have good news today, which we not only acknowledge but also welcome after all the hard work.

Thank you very much for coming and for this highly important meeting for our two countries, President of the Government Rajoy.

President of the Government. Ladies and gentlemen, a very good morning to you all.

As you just heard and as you already know, President Pérez Molina and I have just left a meeting with some of our partners. It was a very friendly and very amicable meeting, as you would expect to be the case for any meeting between Guatemala and Spain.

I have expressed my gratitude to the President for his invitation last December in Veracruz to make this visit to Guatemala - which is my first - following the visit he made to Spain in 2013.

I would like to publicly reiterate my gratitude, Mr President, for having extended such gracious affection and hospitality towards me, and I extend that gratitude to the entire population of Guatemala. We are always made to feel at home.

During our conversations, we have had the opportunity to discuss matters of interest to Guatemala and Spain, which are numerous. Naturally, one of our main topics of discussion focused on our excellent bilateral relations. It gives me great satisfaction to see that we maintain fluid political dialogue based on mutual trust and respect. The best evidence of that can be seen in the bilateral meetings held between President Pérez Molina and myself. The first was held in Puerto Vallarta during my first trip to Latin America; the one today was the fourth and we are committed to continued efforts together for the well-being of our citizens and our bilateral relations.

We were able to discuss the fact that Spanish companies are showing increased interest in the opportunities to be found in Guatemala. They are attracted by the country's macro-economic stability, which is clearly something that should be maintained and regarding which Guatemala is a benchmark country, but they are also attracted by the perspectives offered by the Central American integration process and the Association Agreement with the European Union, which should be harnessed to its full potential. Those opportunities will be a topic of discussion at the Business Meeting organised between companies from Guatemala, Spain and other Central American countries.

As you know, yesterday I had a chance to visit the Spanish Agency for International Development Cooperation Training Centre and Workshop School in Antigua - rightly declared a World Heritage Site, where I was able to witness the commendable work being carried out to help develop the country.

As you know, extensive experience has been accumulated through Spanish cooperation in Guatemala. For over 25 years now, it has constantly supported proposals from the Government of Guatemala and initiatives launched under the regional integration process.

Furthermore, after I insisted that Guatemala will continue to be a priority for Spanish development aid, we dedicated a part of our meeting to discussing the situation in Latin America and, more specifically, Central America.

Spain, as you know, firmly believes that cooperation, free trade and integration represent the future for every region of the world. That is why we will continue to support the Central American process of integration. In this inter-dependent world, there are challenges that cannot and should not be faced alone. The more united we are, the stronger we will be.

For that reason, I want to say that I also support, as President of the Government of Spain, the Alliance for Prosperity and that I am absolutely convinced that it will start to produce results very soon, which will be seen by the citizens of its member countries.

Ladies and gentlemen, security is another of our challenges and also one of the fields of cooperation with the greatest direct impact on the general public. That is why Spain has supported and will continue to support the Central America Security Strategy, as well as the EU Strategy on Citizen Security for Central America and the Caribbean, and its Action Plan, which will be approved during the next EU-CLACS Summit that, as you are aware, will be held in June - not far away now - in Brussels.

We will continue to talk about many of the issues I have just mentioned at the SICA-Spain Summit. It is also being discussed already at the SICA-Spain Business Meeting taking place as we speak and that President Pérez Molina and I are going to officially close.

Once again, and to conclude now, I would like to thank the President for his initiative and effort in organising this summit, which will also give me an opportunity to listen to my Central American colleagues. That is why I am here, as well as to reiterate to the SICA countries that Spain will continue to support this region and an integration process in which both Guatemala and Spain - which has already been involved in an integration process as important as the European Union for many years - strongly believe.

That is all. Thank you all very much for your attention and, again, thank you Mr. President Pérez Molina for your invitation.

Q: I ask my questions on behalf of all my journalist colleagues who are accompanying the President of the Government on this trip. Firstly, for Mr. Otto Pérez Molina. We would like to know whether you agree with extending the International Commission that concludes in September and, if so, for the President of the Government of Spain, how could Spain assist in this matter.

And, if you will allow us, for the President of the Government of Spain, for Mariano Rajoy, a couple of questions on domestic issues. We would like to know why you chose Cristina Cifuentes instead of the current President of the Regional Government of Madrid, Ignacio González; and whether, as the opposition is calling for today, Mr. González should step down from his position.

And regarding Esperanza Aguirre, yesterday you said the controversy was closed. Today, we would like to ask you whether you will allow your candidate for the City Council of Madrid to create her lists and draw up her election manifesto.

Mr. Pérez Molina. If I heard correctly, you asked about the International Commission that concludes in September. We did indeed discuss this issue. I told President of the Government Rajoy how the CICIG - as it is known - operated, and that it is a United Nations Commission that has been working in the country for seven years. I also told him that we are currently in discussions about renewing the mandate for the CICIG. It is an issue that has created certain controversy in Guatemala. I have asked the Commission that we have in Guatemala, which is made up by the attorney general, the Chief Justice of the Supreme Court, the judiciary, the Public Ombudsman and the Minister for Home Affairs, who comprise the body aimed at strengthening the justice sector, to perform an analysis and present their recommendations to me.

That is the process we are following. I am waiting for them to finish the in-depth and serious work they are doing right now and we will reach the best decision for our country in due course. I would hope that this will take place before the end of April.

President of the Government. I will support any decision on this matter adopted by the Government of Guatemala, which, after seven years of work by this Commission - as we have been reminded of here, has sufficient knowledge to do what is best for Guatemala and all the people of Guatemala.

As regards the second question, the question on domestic issues in Spain, you expressed very well what I myself said yesterday. For me, this issue has been closed. What remains are two magnificent candidates, who are working hard to win the next elections. Both of them have been in politics for some time and have their own experience to offer. I believe they are two very good proposals from the Partido Popular. With that in mind, we are going to ask local residents for their backing and support.

Madrid as a region and Madrid as a city have grown in recent years, created jobs and attracted many people. Madrid is a capital and a region with great prestige around the world and the only objective will be to try and convince the people of Madrid, the people of the region and the capital, that the proposal from the Partido Popular is in the best general interest of everyone.

Q: My question is about the Prosperity Plan. You said that Spain will support this process. Exactly how will Spain get involved: technically, financially...? The United States alone has offered a billion dollars. Would Spain support something like this?

And a separate question; what does the Government of Spain think about the warming of relations between the United States and Cuba when considering the presence you currently have in Latin America?

President of the Government. Absolutely, I have just given political support to the Alliance for Prosperity, the Prosperity Plan. They are three countries, yes, but I remember that the European Union - probably the most advanced integration process of any taking place in the world - was formally launched in 1957 under the Treaty of Rome with only six countries. The European Union today comprises 28 countries. Not every country has gained or surrendered the same powers from or to this great project that is Europe. For example, not all 28 countries use the single currency; certain countries have maintained their own currency, including such major countries as the United Kingdom, Sweden and Denmark, among others.

What I mean to say is that these integration processes take time, little by little. They begin with a few early adopters, they start by not sharing every possible power; but what matters is that the world is going where it's going and the world is inevitably moving towards integration processes in every walk of life. We see this in Europe, here we have the Pacific Alliance and even MERCOSUR, which should be moving forward faster than it is. There is a Free Trade Treaty between the United States, Canada and Mexico. Integration processes are also taking place in Asia and indeed in Africa.

So, I am a big supporter of integration processes. What matters most in any integration process is a desire to proceed. Hence, if the countries wishing to take part in this Prosperity Plan have a desire to do so, then we have already obtained what matters most, which is for the process to get off the ground.

So, naturally, they will have Spanish political support. They will have the support they ask of Spain, within the boundaries set by how things are done. As I said before, Spain has made a commitment to cooperation and we will maintain that commitment in the future. Spain is also committed to supporting everything that is being done in terms of security - a significant and important effort. We did not speak about this today but, naturally, Spain is always willing to support Guatemala in its integration processes and everything else related to the countries of Central America.

Cuba and the United States. I think this is positive. We have never been in favour of the embargo, as was the case for each successive Government of Spain, as everybody is aware. Talks are now under way on opening diplomatic relations, attempts are being made to normalise the situation and, of course, this process is supported by Spain as it eventually wishes to see a democratic Cuba, with citizens capable of reaching their full potential and with the same rights and obligations as those in their peer countries may have.

Hence, this process has the support of our country and we hope that everything proceeds positively. We are united by many things, much history, a common language, the presence of many Spaniards, including many from my region, Galicia, in the north-west of Spain, and we hope that things work out very well in the best interests of the Cuban people and the people of the United States.

Q: The question from the Spanish media is for the President of the Government of Spain. Mr. Rajoy, the first elections of the year will be held in Spain in 12 days' time; in Andalusia. According to the polls, no political party will obtain a sufficient majority to govern. The question is: who would you be willing to reach an agreement with - Ciudadanos or the PSOE, especially vis-à-vis a trial run for the general elections?

We would also like to know whether, as appears to be the case, the Government of Spain will lower VAT on cultural spending. We would like to know whether it will be done during this Legislature and whether it will be lowered to 10%.

And I would like to return to a previous question that was left unanswered. Why did you choose Cristina Cifuentes over Ignacio González?

President of the Government. As regards the latter, I have already said that we are focused on the future. I said so yesterday and I am reiterating the same point today, for the second time.

As regards the elections in Andalusia, a lot of polls are being published lately but you will understand that, until we have the results on the table, you can make as many forecasts as you like and try to take bets on what might happen - it makes no difference.

I don't think we should get ahead of ourselves. My only wish is for the decision taken by the people to be respected if the Partido Popular becomes the leading political party in Andalusia again, as was the case in the elections held in March 2012, we all remember that. That is what matters. Everything else, if necessary, will come later. However, in any case, you need not struggle too hard to guess - if you must - who the Partido Popular may or may not see eye to eye with on some issues. Any such move would always be taken in defence of the interests of the people of Andalusia and with an objective that is very clear for me, and which I have expressed on a number of occasions recently; the creation of 575,000 jobs in Andalusia, because I believe that is the real challenge and I sincerely believe it can be done, just as it will be possible to create 500,000 jobs in Spain over the coming years if we maintain the economic policy we have implemented in recent years.

The third question was about VAT. The first thing I would like to say is that not all VAT on cultural spending is at 21%; in other words, certain cultural products are not even subject to the 10% rate but rather the lowest of all VAT rates. Off the top of my head, I can think of the VAT applied to books, which I believe is 4%; museum tickets and libraries, also at 4%... Nothing else immediately springs to mind but there are various cultural products for which only 4% VAT must be paid.

Furthermore, I want to say that the VAT increase took place during untypical times in Spain. You - the Spanish media - know perfectly well what I refer to and President Otto Pérez Molina also mentioned it in his speech. In other words, Spain was a country on the verge of bankruptcy in 2012; Spain was a country that everyone was convinced would need a bailout; Spain was a country about to lose all chances of implementing its own economic policy and where we would have to put VAT, the pension increase and the civil servant wage increase in the control of others, as was the case in other countries.

We had to take decisions that - and I have already said this before - I did not personally like at all. We were forced to raise taxes; Personal Income Tax, Value Added Tax and even Corporate Income Tax. The only taxes we left alone were the taxes in favour of entrepreneurs and small- and medium-sized enterprises because we thought that was essential to job creation.

I believe those decisions, together with many others, started to have an effect and that's why we have been able to lower Personal Income Tax and Corporate Income Tax this year. And next year, in 2016, there will be another reduction to Personal Income Tax and Corporate Income Tax.

In the reform I just mentioned, we treated cultural products in a particularly special way so as to benefit the production of cultural industries. Little has been said of that. Although I have tried to remind people of this fact sometimes, little attention has been paid. Nonetheless, better fiscal treatment has been applied to them as a business activity in film production, theatre shows and also for encouraging the filming of foreign films in Spain.

That said, everyone knows what I think about these issues. If the process of economic recovery continues in Spain, if we continue growing and, above all, if the process of job creation continues, then we will be able to do more in terms of fiscal measures.

Hence, as things stand today, no decision is going to be taken on what you are asking about; but it is not something that has been removed from the table for future consideration, just as further tax decreases are not out of the question either.

But the main problem we had in Spain and that has been dragging us down in recent years is that, between 2008 and 2009, we lost 70 billion euros of revenue. That is 7% of our GDP; 11 trillion pesetas. So it was genuinely difficult, if not absolutely impossible, to maintain the same level of spending and leave taxes untouched at the same time. We are now taking steps back towards a situation of normality, now we can start lowering taxes, now we have been able to increase spending in some areas and my goal for the future is to further reduce taxes and, at the same time, increase public spending under some headings, which I believe can be done.

Therefore, it is not possible today but the idea has not been discarded for the future. I simple do not think it would be appropriate for me to offer a specific timeline right here, right now.

Q: My question is for the President of the Government of Spain. On the matter of security, a major concern for the country, did the President ask you for anything specific for this sector?

And a question for President Otto Pérez. You said that the CICIG has generated certain controversy in various sectors. In which sectors exactly has this controversy been generated?

President of the Government. You are interested in knowing how interested the President of Guatemala is in the matter of security and in knowing the questions raised by him in relation to this subject. Interest is everything because practically half of the bilateral meeting and our dinner yesterday focused a great deal on security issues, where I believe significant progress has been made recently, here in Guatemala.

At any event, this is one of the most important challenges being faced by many countries; unfortunately, many countries and many parts of the world. At the end of the day, what a State has to do..., it must have everything it can but, fundamentally, strong institutions and, of course, a good security policy, a good justice policy that guarantees rights and freedoms and it must be capable of defending itself.

We have supported the Central America Security Strategy, we have supported the EU Strategy on Citizen Security for Central America and the Caribbean, we are going to talk today with the other Heads of State and Government present at the meeting, and I hope that, when the EU-CLACS Summit is held in Brussels in June, we can approve the Action Plan in this regard that - undoubtedly, I believe, and I think this sentiment is shared by almost everybody - represents one of the main objectives for the world: to guarantee our security and guarantee our rights and our freedoms.

Naturally, Spain will always be there, alongside Guatemala and the other Central American countries, to improve security for the people.

Mr. Pérez Moreno. The controversy I referred to earlier revolves around the statements made by the various sectors through the media about whether the commission known as the CICIG should or should not continue.

Only a few days ago, last week in fact, in your media channel to be precise, I saw an interview with one of the lawyers who was making his statement about the reasons why he said that the CICIG should not remain in the country. Such statements as that which I saw in the media channel you represent have been seen in almost every media channel, featuring some people arguing in favour and others arguing against the continued presence of the CICIG and the results it may or may not have had, depending on who is asked and depending on their point of view.

Rather than make personal judgement, I asked - as you are aware - for a group judgement or analysis to be made by entire professions. That is why I am waiting for a result from the coordination body on strengthening the justice sector and, based on that, I will consider what decision needs to be taken, as I said, no later than the end of April.

Thank you very much.