Press Conference by the President of the Government after European Council meeting

Brussels

President of the Government: Good afternoon and thank you very much for coming. I am here, as you know, following the European Council meeting which just ended a few minutes ago, as you also know.

Let me begin this conference by expressing my condolences, my solidarity and that of all the people of Spain with France and Tunisia, countries that have today been the target of terrorist attacks. I had the opportunity to convey my condolences personally to the French President, François Hollande, before he left the summit and I talked before arriving at this press conference with Spain's ambassador in Tunisia.

We still only have very preliminary data, but it appears that there have been a large number of victims in Tunisia. The terrorist attack was perpetrated at a tourist resort in the centre of the country, in the city of Soussa, affecting, among others, a Spanish hotel chain, with Spanish capital.

The Ministries of Home Affairs and Foreign Affairs have implemented the protocols established for these cases and we will be informing you of developments as they arise.

In any case, I want to reiterate, once again, our condemnation of terrorism in the strongest terms. Today we have seen that barbarism and senselessness strike at everyone equally. Today there has also been a terrorist attack on a mosque in Kuwait. So we must all cooperate in eradicating this scourge.

As you have heard me say before, the fight against terrorism has nothing to do with religious beliefs, but with fanaticism and the complete lack of decency and humanity on the part of those who threaten the lives of others. In that battle, all good people, whatever their beliefs, must be united, as the Government of Spain, the Socialist Party and the People's Party are united; in fact, not long ago we signed an agreement against Jihadi terrorism, and the Monitoring Committee for the agreement is meeting this afternoon at four o'clock at the Ministry for Home Affairs.

Ladies and gentlemen, this European Council has devoted much of its work to the migration crisis in the Mediterranean, based on the principles agreed at the extraordinary European Council meeting of 23 April and the European Agenda on Migration presented recently by the Commission.

It is absolutely essential to stress, as I have done with my European colleagues, that the shipwrecks and deaths that have occurred in the Mediterranean constitute a genuine human tragedy to which the European Union should provide a joint response, based on the principles of solidarity and shared responsibility. Its priority objective, the most important one, must be to prevent the recurrence of tragedies such as those that unfortunately have occurred all too frequently in the Mediterranean recently.

I will not go into the details of each and every one of the issues that we discussed over these days. They are included in the Conclusions. But I would point out that Spain was a rapporteur, if I may use the expression, in this debate. I was the first person to take the floor; I was asked to present what Spain had done in the fight against illegal immigration and the mafias. I talked about our cooperation with the countries of origin. Very recently I was in Senegal, seeing how things are being done well and there is a great relationship between the Senegalese Government and the Spanish Government. The Minister for Home Affairs has also been there and in Mauritania recently. I explained how we are working together, how we have signed readmission agreements and how cooperation is working well.

In the European Union, the Council has taken two decisions: first, a commitment made to present, on this basis and as set out in the Conclusions, some proposals and initiatives whose primary purpose is to establish - and it's high time - a genuine European policy on immigration. What it is at issue is, first, to promote cooperation with countries of origin and transit; to help them and assist people by improving living standards, increasing the levels of welfare and wealth so that they do not in turn feel obliged to try to leave their country as the only way to find a decent life. The second major objective is to strengthen the role of the FRONTEX border control. And, third, to establish a system of relocation and re-settlement for people in need of international protection and repatriation agreements with those third countries to avoid the pull factor.

A measure has been taken as an immediate reaction: relocation from Italy and Greece to other countries, on a temporary and exceptional basis, of 40,000 people in clear need of international protection. The Council will adopt a decision by consensus this month of July to see how this relocation operation can work in practice. And it has also been decided to grant additional emergency financial assistance to the Member States most affected.

I have passed on to all my partners that they can always count on the involvement and firm support of Spain to put an urgent stop to this intolerable human bloodshed. I have spent years working on this issue: I began to do so as Minister for Home Affairs some years back, and I have a total and absolute conviction that this is one of the most important problems facing the European continent, that it can't be settled with a quick fix or with partial decisions, and that is absolutely essential to develop a comprehensive policy on immigration.

There are many places in the world - and now I'm basically referring to the African continent; they also exist in Eastern Europe but above all on the African continent - where many millions of people live in the worst situation you can imagine. What those people, especially young people, want, of course, is a living, to have a decent life, and so they are forced to put themselves in the hands of the mafias with the dramatic consequences we have seen in recent days.

Therefore, there is a need for intensive cooperation work with these countries, to help them; second, we have to control borders well; and, third, we need repatriation agreements to ensure the mafias that traffic in human beings have no hand to play.

Besides this matter which, I repeat, is very important for the European continent, we have also addressed issues of great importance for the economy. First, there is the matter of Greece. There was simply a very short - not even debate - briefing from the President of the Eurogroup. There were a few comments after that, but this is an issue that is mainly being addressed in discussions between the International Monetary Fund, the European Commission and the European Central Bank with Greece; and then also in the Eurogroup which, as you already know, meets on Saturday with the aim of trying to reach an agreement.

We have been informed by the President of the Eurogroup that negotiations are continuing; that it will, as I have just pointed out, meet tomorrow and, as I noted last Monday in Baiona, after the Summit between the Spanish and Portuguese Governments, Spain hopes to reach a solution which may benefit the citizens of Greece. This solution must be within Community law and respect the commitments that all of us have accepted. Our reference is the Eurogroup agreement of February this year, which allows some flexibility, and this position, Spain's position, is shared by all countries represented in the Eurogroup.

As well as Greece, we have talked about three other things from an economic point of view, which I'll try to sum up: first, we have supported specific recommendations for Member States as part of the European Semester; second, the Presidents of the Commission, the European Council, the Eurogroup, the European Central Bank and the European Parliament have submitted their report of proposals for completing the design of Economic and Monetary Union; and, third, we have discussed the European strategy for the development of the digital economy. So there have been three important issues to occupy us over the past few hours. I will now deal briefly with each of these issues.

In connection with the European Semester, as you are aware, the European Council meetings in June, like this one, discuss the specific recommendations addressed to Member States. Only a couple of years ago, two years ago, Spain was on the verge of having infringement proceedings initiated against it due to the serious accumulated imbalances. Today Spain has been given some minimal recommendations compared with what happened in 2013 and 2014, and - something I'd rather not think about - 2012. And the Commission believes that our imbalances are not excessive.

The recommendations addressed to Spain this year show that the situation has changed radically and it is the fastest growing Eurozone country this year, in 2015, and the country that is creating most jobs. This, as you know, has been through an intense process of reforms and, above all, a great effort on the part of Spanish society.

On the second matter to which I referred talking about economic issues, the report on the future of Economic and Monetary Union. This is a key issue, because it is concerned with where Europe is going. This is the most important issue from a structural point of view that we have in the future. Europe has been built, as you know, slowly, for many years. The Treaty of Rome dates back to 1957, no less; but it had its origins in the European Coal and Steel Community. In recent years, we have worked on Banking Union, approved the Fiscal Treaty; now what we are dealing with is seeing where we are going in the future.

What I mean to say is that Spain has been very active on this issue. We have presented a proposal, like others submitted by different countries, that has provided the basis for the preparation of this document we have seen at this session of the European Council. The conclusions, the most important of them - I don't want to exhaust you - are the following:

Monetary Union should continue to make progress in its integration. This process is necessary if the Euro is to function properly and to be perceived as a source of welfare for citizens. To this end, progress is needed in five areas:

- First, a more integrated internal market in areas such as energy, which as you know, is very important for Spain, retail banking and the Digital Agenda, among others.

- The second area in which we must make progress is labour mobility. At this point in time it is very difficult, as you also know, because there are many problems to try to overcome, for a person in one European Union country to move to another. Sometimes there are problems with the recognition of diplomas, sometimes there are problems with Social Security itself or sometimes there are problems with unemployment benefits. The basic idea is to get rid of all obstacles to something that is unstoppable and with which we are going to live in the coming years, especially younger people: I mean labour mobility throughout the whole of Europe.

- Third, the coordination of economic policies to prevent the accumulation of fiscal and external imbalances that jeopardise the Euro. This requires new indicators for competitiveness, as was the case during the Maastricht process, which allowed Member States to implement economic policies compatible with the single currency.

- The fourth important issue is Fiscal Union. This is something for the long term, with the creation of a budget for the Eurozone.

- And the fifth issue, also very important and also for the medium to long term, is Political Union, to ensure that the system of governance agreed for the Eurozone respects democratic legitimacy in decision-making. This is key.

Well, to advance this integration Spain advocates a gradual process, as I just noted, based on long-term convergence criteria.

As I pointed out earlier, many of the ideas that we propose have been included in the report of the five Presidents; so I'm pleased with that. For example, the report advocates the establishment of a process of gradual convergence based on indicators and this process would lead to greater fiscal integration and the creation of a stabilisation tool, ending up with the creation of a common Treasury for the Eurozone.

The five Presidents consider it necessary to strengthen the monitoring of competitiveness as an essential element to ensure the Euro's stability, and recognise the need for further progress in the internal market, in particular the completion of banking union and labour mobility; again, this is an important issue that is also reflected in the Spanish proposal.

We have agreed to quickly study the report of the five Presidents with a view to agreeing as soon as possible the measures they can start to get under way in the short term.

Finally, I will refer briefly to the Digital Agenda. The Internet and Communication and Information Technologies, as you know, cut across the whole economy. Increasingly, the global economy is a digital economy and the digital economy can be an important driver of growth, innovation and, above all, quality jobs.

In this new reality, the EU must position itself strategically and not fall behind. It is a question of promoting the creation of wealth at all levels of the digital value chain, from the content industry to the development of digital platforms and network deployment. We must therefore advance the integration of the European digital market, while protecting the rights of consumers and ensuring adequate remuneration for content creators.

At this European Council meeting we have undertaken to make progress on the various areas of the Digital Agenda, as included in the Conclusions. In particular, upon a proposal from Spain, the Conclusions include a reference to the need to ensure portability and cross-border access to content, ensuring a high level of protection to intellectual property rights.

Finally, I would like to tell you that we have also addressed the Common Security and Defence Policy, in a debate at which the Secretary General of NATO also participated. We have agreed to promote the new Internal Security Strategy and the review of the Global Strategy on Foreign and Security Policy. Both need to be closely coordinated, as security is indivisible. Furthermore, we have emphasised the need to move forward so that the budget of the European Union can ensure adequate funding for this item, including the defence industry, allowing us to strengthen our capabilities when it comes to preventing and effectively managing the crises that we face. Our security and defence certainly matter.

Ladies and gentlemen, I am at your disposal, but before that I do want to say that the European Council also agreed to grant Jacques Delors the title of Honorary Citizen of Europe. This is an issue that had been proposed by Spain and I referred to it in a statement 48 hours ago, I seem to recall. It was last Wednesday at the Royal Palace, when we were commemorating the thirtieth anniversary of the entry of Spain into what was then called the European Communities. I believe that with Jacques Delors, who for ten years was President of the European Commission, Europe shifted from Euro-pessimism or Euro-sclerosis to de facto solidarity, such as the Internal Market and its four freedoms, economic and social cohesion, all of which is reflected in economic packages that bear his name: Economic and Monetary Union and the Treaty of Maastricht.

Jacques Delors is the father of the Euro, our common currency, and without a doubt, I believe it is right that he should join two personalities who are also Honorary Citizens of Europe: Jean Monnet and former German Chancellor Helmut Kohl.

Q: Mr President of the Government, I would like to know whether Mr Wert is going to be the next ambassador to the OECD and if his replacement brings to an end the changes in the Government.

I would also like an assessment of Mr Chaves and Mr Griñán being summoned as persons of interest in a case, given the important role they have played in both the Socialist Party, and in Andalusia, as both have been presidents of the regional government.

President of the Government: On the first issue, no decision has been taken.

On the second question, I do not intend to make any cabinet reshuffle. We are at the end of our term of office; there is no reason to justify it and we are not going to change the policies that have worked, on the whole, and we are only a short time away from the next general election.

As for Mr Chaves and Mr Griñán, I always respect the decisions of the courts, whoever they affect. Like any citizens, they are subject to the presumption of innocence. What's more, the person to explain this matter is probably not me, but Mr Pedro Sánchez, who seems not to apply the same criteria when speaking about them as he does when he talks about people in other political parties.

Q: A question about Greece. The gap on paper between the proposal by, let's call them, the institutions, and the Greek proposal is not so wide; however, it has been said by both Greek and European sources, that trust has broken down. So there is a fair amount of pessimism on whether an agreement can be reached in the Eurogroup meeting tomorrow, which is quite crucial. Do you believe that this agreement will emerge? Are you one of the optimists or are you more cautious?

The second question is about the presidency of the Eurogroup. This was the last summit before the next Eurogroup which will decide, on 13 July, on the election of its president. I was wondering if you have used the opportunity to drum up new support during this summit and what your feelings are; do you believe that Mr Guindos is in a position to win the presidency?

President of the Government: With respect to the second question, I have to say that I have indeed used this Summit - allow me not to go into details, it's not relevant either - to talk to some Heads of State and Government in relation to this matter.

We believe that Luis de Guindos is the right person to be President of the Eurogroup: first, because of his own personal capabilities, which is the most important reason; second, because he is member of a government that has shown that you can get out of a situation of pre-bankruptcy and also a situation that put us on the brink of a bailout, and become the country that, as I said before, is the fastest growing in Europe right now and in which most jobs are being created.

And there is another reason: the Netherlands currently has the first Deputy President of the Commission and now, starting barely 48 hours ago, the Netherlands also has the General Secretariat of the Commission. I believe that Spain is a country with nearly 50 million inhabitants, it is the fourth largest economy in the Eurozone, it has a capable candidate and has a government that has also been capable of implementing an economic policy that is good for Spain; and that, above all, it is also good for the whole of Europe. We were the big problem in Europe three years ago, and now we are part of the solution to the problems.

The first question is difficult to answer. Am I optimistic or am I not optimistic? What I can say is that I want an agreement to be reached. I want an agreement to be reached and what is more, during one of the statements at this European Council meeting, when there was a discussion about this issue, I asked the Greek Prime Minister to do everything in his power to reach an agreement.

When a country is in a bad situation and it has to take difficult decisions, the government can do two things: one, take the tough decisions or not take them; and if you take the tough decisions, it is normal that things turn out well, although there may then be negative political repercussions. But there is no doubt that if tough decisions are not taken, things are sure to go wrong and they will also have negative political consequences. I'd like an understanding to be reached.

The most important problem that Greece has right now is that Greece needs to grow; Greece needs economic growth, it needs jobs and it needs to raise money, so it can cover its basic public services. The latest data I have seen in May were of a loss of revenue of 24% on May of the previous year, which is very worrying.

A few months ago Greece had a forecast for growth this year of just over 3%; the latest growth forecast for Greece is of 0.5%. Like that it's very hard for things to work.

So what the European Union and all countries, and certainly the Government of Spain, want, is to help Greece; but Greece must also allow itself to be helped and it has to understand that without reforms and without expenditure controls it is absolutely impossible to come round to a normal situation.

I hope that the Eurogroup meeting that will take place tomorrow will be useful in the way that we all want. I don't think it would be a good message for Europe, and I don't think it would be a good message for Europe either, if each of the countries that are part of it did as they pleased, and so we all did what we thought seemed appropriate and convenient to us.

Q: I wanted to return to the issue of the government and the appointment of the new Minister for Education. You said a few days after the elections of 24 May that you had taken note of what had happened and that there were going to be changes in the People's Party and in the government; you then even included the same expression in your Twitter profile. I wanted to know if what happened last night is what you were referring to, if this is what you meant, and what is the explanation for the replacement by Mr Méndez de Vigo. What is the justification for this person replacing José Ignacio Wert?

Then, I don't know if you've had time to see it, but there have been many people who have questioned the way and the form in which this appointment took place, with a statement at ten o'clock in the evening, eight lines by e-mail; even sending the Royal Decree with the appointment by this same procedure to the King. Do you feel that this is the right procedure, because you yourself said that you would take note that politics had to be carried out differently after the elections of May 24?

President of the Government: As you know, one of the powers that the President of the Government has... There are only two that are specifically his, that don't have to go through any administrative body; and they are to appoint the Cabinet and to dissolve Parliament. Those are the two powers that are specific and absolute for a President of the Government.

I have replaced Mr Wert because a long time ago he expressed his desire, for personal reasons, to stop being a minister; and I have appointed Mr Mendez de Vigo, because I think he is a capable man, with great experience. He has been a Member of Parliament for a long time, he has participated in major forums and he is currently President of the College of Europe in Bruges. He is a profoundly pro-European man. I know him very well; he has been State Secretary for the European Union. So I believe and I am convinced that it will be the case, he has sufficient merits, substance and category, which is the only thing I've thought about in appointing him as minister.

Everything else is debatable. At other times there has been a change of government and I have not given a press conference but I have issued a statement. It happened when Miguel Arias was named candidate by his party in the European elections, and on two other occasions as well. It has always been a statement, which is the normal procedure in many places. Probably at the start, or in the case of a government crisis, some people may call a press conference; but I haven't done so on all previous occasions.

As for the time, what can I say? If you want, from now on I'll do it at 12 noon; but of course you have to understand that one has the timetable one has and the availability one has. If anyone was upset by my timetable, I'm sorry and I beg your pardon; but, really, I don't think it's the most important subject in history.

Q: Mr President of the Government, I wanted to return to the issue of the Eurogroup. Yesterday we could see you talking with Mark Rutte, the Dutch Prime Minister. I wonder if you passed on to him these arguments that perhaps the Netherlands is a little over-represented in the institutions, whether he accepted these arguments, and if you believe that Mr Rutte could withdraw Dijsselbloem from the race for the Eurogroup.

A second question, if I may, on Greece. There are some sources, some sectors in the Eurogroup, in the Eurozone, that suggest that if there is no agreement in the Eurogroup tomorrow, the next meeting of the Eurozone will be to discuss the consequences of the Greek "no". Is that the attitude of Spain or do you think you should draw out the negotiations as far as they will go and that the deadline is not really tomorrow?

President of the Government: That is the attitude of Spain, what you said at the end. This is complicated, it's difficult, but we must try until the last moment, like so many things in life. After all, if you don't fight the fight you can't win it and if you don't try you won't get anything.

I think it's bad, first, for Greek citizens who will have to leave the Euro; it is very bad for Greece, which will enter a situation that is difficult to predict; and it's bad for Europe, above all for one reason: because it would send a message, albeit in a very extraordinary case, of the reversibility of the Euro.

So I think we have to make an effort, and an effort is being made by the institutions and an effort is being made by the different countries that make up the Eurozone.

There is flexibility. The European Union has always acted with flexibility. I remember that when we came to government - some of you will no doubt remember the situation - there was a public deficit of 9.1% and in 2012 we had to lower it to 4.4% and we were in recession. So at this point we said, "This is impossible, you can't cut it from 9.1% to 4.4% in a recession. That's impossible." The European Union was flexible, we set another schedule to reduce the deficit and we are complying with it steadily. And it has also been flexible with Greece. In fact for the first time, because this is unprecedented, the situation of a country has been discussed at Council meetings with Heads of State and Government. You know that Portugal and Ireland were subject to the programme but there was never any debate at the meetings of the European Council. This was a matter for the institutions, basically, and of course also for the Eurogroup.

Therefore, Spain's position is going to be to try to reach an understanding but, just as I say that, I say that Greece also has to give up their 'its all-or-nothing' approaches. It has to realise also that the key is, as I said before, growth and job creation. In other words, Greece owes the European Union, the countries of the Eurozone, 90% of its GDP. It's as if Spain would have been lent 900 billion euros by the rest of the European countries, 90% of our GDP, which is an astronomical figure. And it's a loan, but look at the conditions: the principal is only payable after 30 years and the interest after 10 years.

Well, we are willing to be flexible, but here everyone has to bring something to the table. We all understand the political conditions or promises that the Greek Prime Minister may be bound by; but I think he should be brave, because I think it will also be best for his country and, if I may say so, for him as well.

The Netherlands, Mr Rutte. Mr Rutte and I have a great relationship, but each lives his own life, especially with respect to a subject such as the one you are asking me about.

The conversation with Mr Rutte dealt with the issue of Greece; essentially, it was on the issue of Greece. We were examining some issues there in more detail, and what we had was convergence, as there is in most cases. In other words, we sometimes say: "Some want more, some less ..." No, this is a very united Eurogroup. I think the statement that I have just made now when you asked me, is one that any of the Heads of State and Government in the Eurozone would put their name to. But anyway, let's keep plugging away, which is how some problems at any rate can be fixed.

Q: Mr. President of the Government, I wanted to know what a new minister can do when there are presumably three months left before elections are called, what tasks you have ordered him to carry out, or what the priorities of the new Minister for Education, Culture and Sport may be in such a short period of time.

I also wanted to ask you if perhaps you tried to convince Mr Wert not to go, precisely because of the proximity of the general election. I don't know if you tried to convince him somehow.

And on the anti-Jihadi terrorism pact, whose monitoring committee you said will be meeting, do you believe that the time has come, above all with the new political map that has emerged after March 24, to try to open it up for new parties to sign up to this pact?

President of the Government: Any party that wishes to join this pact can do so. When the Socialist Party and us signed it, no one wanted to join us in this pact; but it is open to all those who want to work in good faith and who believe that it is absurd that there should be the slightest argument or debate about an issue like the fight against terrorism, which is the biggest enemy faced by our human community. So that's the situation.

Regarding all the other issues, it doesn't make much sense. They are personal reasons. Look, we're human beings! I respect personal decisions, period.

What should be done? At this point in time we have a major challenge, which is to continue with the implementation of the reform of the Education Act. That is, without a doubt, the most important matter we have in hand and the academic year begins, as you know, very soon. And to continue working on the two major projects of this term in office: first, to steadily increase the number of students in vocational training.

This is a key issue. I remember, when I was Minister for Education in 1999 and 2000, three-quarters of the students in Spain were at university and a quarter were in vocational training, which was exactly the reverse of the case in Germany. Well, at present there is a high demand for skilled workers and, fortunately, in the last four years the number of students in vocational training has increased a great deal. So we must persevere in that direction.

Next, we have to continue to introduce Dual Vocational Training in our country. This is something that has worked in Germany and Austria for a long time. It combines a period of study with a period of work experience in a company. It's great for young people, because they learn, but they also have the possibility, when they complete their studies, to stay in the same company where they did their work experience.

Of course, these are the top priorities and then we have to listen to people, see what their concerns are; and based on that, take the decisions that have to be made at any time.

Q: Mr President of the Government, in the debate on immigration quotas, the result now is that they will not be mandatory, but rather voluntary. Germany has already made public that the number of asylum seekers who they will accept is very similar to the quota it was asked for. Has Spain already made its decision? Do you have a figure? When will you take that decision?

Second, you explained that Mr. Wert had already taken his decision, had repeatedly asked you to stop being minister. Can you tell us when you took the decision on who precisely his replacement would be, because doing it during a summit is a little strange?

President of the Government: Actually, decisions mature and the decision is taken before it is made public. Period. It makes no sense to engage in a sociological or psychological analysis on this subject. I decided it was to be yesterday and it was yesterday.

Regarding the issue of quotas, we still have not taken any decision, except for one, which is the most important, and that is to show our willingness to collaborate and cooperate in this area.

In any case, I would like to draw attention to the issue of quotas. The debate that has taken place now is a debate on quotas. We're talking about 60,000 people, which is the proposal made by Mr Juncker; but last year 170,000 people entered Italy by sea alone.

I think the quota system is very good, it reflects internal solidarity within the European Union; but what is urgent, in other words, important, the most important thing, is to implement an immigration policy like the one I referred to earlier: cooperation with countries, border control and readmission agreements. That is the most important thing and, I repeat, I think it is one of the major challenges facing the European Union in the coming years.

Ladies and gentlemen, thank you very much.