Press conference by the President of the Government and the President of the Republic of Romania

President of the Government. A very good afternoon to you all.

First of all before all of you, I would like to welcome the President of Romania on his first official visit to Spain. We in the Government of Spain are very grateful for this visit because, at the highest political level, it has enabled us to highlight the excellent health of our bilateral relations and the various ties that unite our two nations, two economies and, above all, two societies.

It is a well-known fact that the Romanian community in Spain consists of approximately one million people. However, what I want to underline and what I am especially happy about as a Spaniard and a European is the complete integration of that community into Spanish life; it is a community that has contributed to the development of our country, the development of Romania and the enrichment of both our societies.

A few days ago, I was asked at the European Council to describe Spain's experience in illegal migratory flow management and the control of our external border. Well, I could have also described our positive experience in the integration of legal migration; specifically, those people coming from a country we consider both a friend and partner - Romania. It is undoubtedly one of the clearest and most successful examples of integration in Europe; one that highlights the diversity, tolerance and openness that characterise Spanish society.

These strong social bonds combine with increasingly dynamic trade exchanges, which amounted to an all-time record of over 2.74 billion euros in 2014 - a 15% increase on the previous year. In turn, our companies are participating in various Romanian infrastructure modernisation projects, harnessing the window of opportunity offered by the fact that Romania is one of the main recipients of European funds at the present time.

Close cultural relations are another sign of the mutual respect that exists between our two countries. The interest in the Spanish language shown in Romania is a constant truth that translates into strong activity by the Cervantes Institute, whose centre in Bucharest is celebrating its 20th anniversary in 2015. Spanish is studied as a second foreign language by more than 13,000 secondary school children. I honestly believe this is highly positive because it clearly reflects the considerable overseas interest in Spanish language and culture.

Finally, allow me to highlight another factor of capital importance that unites our two countries: our common European condition.

Spain and Romania are two active members of the EU that are fully committed to the European integration project and the defence of the integral values and principles of the European Union: solidarity; economic, social and territorial cohesion; the free movement of people; and, naturally, responsibility and compliance with commitments to project an image of credibility and reliability both within and beyond the European Union.

Today we underlined the need to continue working together within the EU in the interest of achieving the main political objectives steering our government efforts: job creation; prosperity for our societies; growth; and the competitiveness of our economies. All this must be achieved by strengthening EU institutions and policies, and through the necessary and increasing coordination of our economic policies.

We are getting there, and this can be seen from the irrefutable macroeconomic figures, but it is essential that we maintain our tireless efforts to underpin what has cost us all so much work to achieve. Not doing so would mean going back to the same mistakes, wastefulness and irresponsibility of the past.

Regarding matters of international politics, we had the opportunity to discuss the fight against Jihadi terrorism and the situations in Libya and Ukraine. As you are aware, Jihadi terrorism represents the most serious threat to our values and our citizens, and that is why we reaffirmed our commitment to eradicating this threat. This fight requires determination, a common and long-term effort, and the adoption of a comprehensive focus that, among other factors, should include inter-cultural dialogue, border control, the fight against the financing of terrorism and ways to avoid the recruitment and radicalisation of young people.

The phenomenon of so-called "foreign fighters" is especially concerning. Hence, Spain is organising a ministerial meeting of the United Nations Security Council Counterterrorism Committee at the end of this month, which will be especially focused on tackling this phenomenon.

Jihadi terrorism expands where States are weak, such as is the case in Libya. We agreed on the urgent need to find a solution to the conflict. We support the United Nations mediation efforts and we want more support for an agreement capable of guaranteeing the territorial integrity of Libya and institutional stability in the country, as well as an effective response to Jihadi terrorism and those engaged in people trafficking.

Finally, we discussed the crisis in Ukraine, which continues to concern the entire European Union. The only solution is a political one based on the Minsk agreements. For that reason, we repeat our call for all parties to respect the ceasefire and move forward on compliance with the political aspects of those agreements. At the same time, we must also foster broad and inclusive dialogue with Russia, who continues to be our largest neighbour and a fundamental actor on the international stage.

Ladies and gentlemen, thank you very much for your attention. The President of Romania, Klaus Werner Iohannis, will now say a few words, and I reiterate my thanks to him for being here today with us, in Spain. Thank you very much.

Mr. Iohannis. Thank you very much, Mr President of the Government.

Ladies and gentlemen, I would like to start by saying that I feel honoured and happy to be on this official visit here, in Madrid. I want to thank the Spanish authorities for their kind invitation and warm welcome, and I would like to particularly thank the President of the Government for his efforts to be here today. I remind you that the President of the Government has recently participated in 17 hours of negotiations in Brussels and came straight here for our meeting. Thank you. I greatly appreciate the gesture.

This morning, we met with H.M. King Felipe VI and the President of the Government, Mariano Rajoy. Our conversations were very friendly and fruitful. We focused on numerous issues: our bilateral relations, cooperation within the European Union, NATO and various matters affecting foreign affairs policy.

Of course, we spoke about the sizeable Romanian community that lives in Spain. I would like to take this opportunity to reiterate our gratitude for the openness with which our citizens are received and integrated into Spanish society.

Together with the President of the Government, we welcomed the significant development in recent years of relations between Romania and Spain in terms of both economic and political affairs. As you are aware, relations between Romania and Spain entered a new era in 2013 under the Strategic Partnership. During the course of our meetings today, we spoke about specific ways in which we can fully harness the opportunities offered to us by this new partnership.

I would like to stress that economic and trade relations occupy an increasingly significant place in our bilateral relations as a whole. It should be noted that over the last ten years, of which six have been years of economic crisis, trade between Romania and Spain has doubled. At the end of 2014, bilateral trade exchanges amounted to a very substantial figure and Spanish investments amounted to over 1.35 billion euros. However, there is still room for more to be done and that is why, during our talks, I stressed the fact that we want an even broader, more diversified and long-term presence by Spanish investors in Romania. We invite Spanish companies to invest in such fields as energy, industry and agriculture. They are welcome in all areas.

We also exchanged ideas on opinions at a European Union level and welcomed the fact that Romania and Spain share a common standpoint on the importance of cooperation and solidarity between Member States for building a stronger, more united EU against both internal and international challenges. In this regard, I would like to particularly welcome the agreement reached last night and this morning on Greece.

We also discussed another important area in terms of cooperation: strategic military cooperation. Romania and Spain cooperate closely as NATO partners. We spoke about the NATO "Resolute Support" mission in Afghanistan and our joint participation in the NATO anti-missile defence shield.

We also exchanged opinions about issues on the international agenda, such as developing the Eastern and Southern Neighbourhood of the European Union, and the growing phenomenon of international terrorism.

I can confirm that everything is in place for us to move forward together towards a higher level of bilateral relations.

Once again, thank you very much for the warm welcome and conversations.

Q. My question is aimed at both presidents and reflects the interest shown by the Romanian press in Spain and the Romanian citizens who live here. Did your talks today include discussions about the dual citizenship situation? I ask because there are many Romanians in Spain who wish to obtain Spanish citizenship after integrating themselves very well in this country, as President of the Government Rajoy said himself, and also Romanian citizens who left during the communist era and lost their Romanian citizenship who must now renounce Spanish citizenship in order to become Romanian citizens.

Mr. Iohannis. It is an important issue and I must say that we did indeed discuss this. It is not easy, as you already know. Spanish law clearly states when dual citizenship can be granted and when it cannot. The issue is not so simple for Romania, but we encountered openness and I am optimistic because solutions to this problem will be found when approached from a reasonable perspective.

President of the Government. I believe the President has already said what I was going to say. He did indeed bring up this subject. Such matters are governed by our legal system. We all now form part of the European Union and European citizenship encompasses us all. However, it is clear that, in certain cases and for certain different situations, such as those you just mentioned, we are naturally open to the idea of dual citizenship and that is what we conveyed to the President of Romania.

Q. I have questions for you both. From Mr. Iohannis, I would like to know whether, after seeing what has happened with Greece, you believe the people of Romania remain just as interested as before in joining the Euro.

And for the President of the Government, I would also like to press you for more information on the agreement with Greece. I would like you to explain which parts of the agreement they have now accepted you believe to be worse than that which was put to them before the referendum; at least the essential parts.

What will Spain need to contribute? Will it consist of guarantees and how soon will they need to be put on the table?
Are you still confident that the Greek government can pass this agreement through its parliament and what will happen if it cannot?
Finally, do you think the agreement with Greece damages the chances for Luís de Guindos taking over the presidency of the Eurogroup? If he is not given the post, will you ask for some sort of compensation given that we have lost a vice-president of the Commission and an executive post at the European Central Bank?

Mr. Iohannis. I think it is important to try and reach a few conclusions, to learn something from the recent crisis with Greece, to realise that solidarity is very important for a functional union. The issue of prevention must also play an increasingly important role in these affairs.

As regards the matter of Romania joining the Eurozone, Romania wishes to become a member of the Eurozone, as do all members of the European Union, with only one exception. We committed to becoming members of the Eurozone when all the conditions have been met.

President of the Government. I am going to try and respond to the extensive list of questions you asked me about issues mainly related to Greece, although not all of them.

First of all, what I want to say is that, in my opinion, this is good news. This was a complicated, difficult subject with opinions to suit all tastes: some were saying "we shouldn't give the Greeks a single euro" while others were saying "we should refrain from imposing conditions and just give them loads of euros". Look, as always, the best path is usually found somewhere in the middle.

I think this is good news and it will strengthen the single currency, strengthen the Euro. The Euro is a currency that everyone wants to be a part of and no-one wants to leave, or at least the vast majority want to be a part of it.

I think the conclusion we should reach from today's agreement is that there are some values that are European and that we should all make every effort to comply with them. There is one enormously European value; and that is solidarity. Europe, the European Union, the Eurozone, has shown great solidarity with Greece. At the present time, Greece cannot turn to the markets. Given its economic situation, there is nobody that will lend it money. But the Member States of the European Union are there to lend amounts under very good terms, as you know, worth practically - not 100% - but 90% of the country's gross domestic product. That solidarity is being maintained under the agreement reached this morning.

But there is a second value, which I also consider to be very important; that of confidence. In order for an organisation made up by 28 countries - such as the European Union - or 19 countries - such as the Eurozone - to operate, we must have complete confidence in one another, and that confidence must be earned. It is true that certain events in the recent past generated distrust in many people, the latest of which was the referendum called without telling anyone.

Thirdly, it is very important to fulfil your commitments, for the same reason: we are in a place where we all have rights, but we all have obligations too. You cannot merely claim your rights while saying "I assume no obligation".

Furthermore, rules and procedures must be respected.

Therefore, I believe this is an agreement in which certain values - European values - have been put on the table, and the fact that has been done is very important.

You also asked me which parts of the agreement are worse. That naturally depends on what you consider good or bad. I cannot speak for you but I believe that the agreement is a reasonable one. There are some controversial issues that were perhaps missing from the table earlier on. For example, the issue of VAT was discussed, the issue of pensions was discussed, the issue of independence for the Greek equivalent to the Spanish National Statistics Institute was discussed, and fiscal discipline matters were discussed. Perhaps there was one important breakthrough, which was the creation of a fund to which certain public assets will be added over the coming years and that will be 50% used to recapitalise the financial entities, 25% used to reduce the debt and 25% used for productive investment. For that reason, I believe the agreement is a balanced one.

I think there is something else that was not included in any of the previous texts; the review of the decisions taken by the Greek government while contravening the agreements reached on 20 February. It was a breach of certain agreements that had been reached and it is something for which a new solution will now be sought.

Nonetheless, I repeat, at the end of the day, we have made progress and reached an understanding. The key now is for everyone to do their bit and fulfil their commitments. Above all, the most important thing is that, if everyone does their bit and fulfils their commitments, Greece will eventually see growth, job creation and, therefore, improved well-being and wealth for all its citizens, which, at the end of the day, is the key issue.

What are our commitments? Spain will contribute whatever is due, as we always have. What will happen now? Greece has to approve four laws next Wednesday: one on taxes; another on pensions; and a further two laws. When that happens, the institutions will check whether it has met its commitments and then - some countries have to pass it through their national parliaments, others not - it will be time to tell the three institutions to start negotiating the programme with Greece. Once that has been done, which isn't easy and will take time, Spain will need - via a loan from the ESM - to provide approximately 11% or 12%, a figure set by our gross domestic product. Hence, that is the contribution to be made by Spain.

Do I think these laws will be approved by the Greek parliament and the document we all agreed upon will be approved? I don't know. I am confident that will be the case; but I cannot speak on behalf of the Greek parliament. I think we have quite a broad agreement because both the Partido Popular and the Partido Socialista are supporting, and have supported, all the latest decisions adopted there, after clearly disagreeing on the referendum.

Finally, we do not have a vice-president of the Commission but that is of no concern because neither do France, Germany or the United Kingdom. We have a very important portfolio, which was that of energy affairs - previously held by Germany - to which has now been added climate change affairs - previously held by Denmark.

It is true that we are not in the European Central Bank. That was already decided when we came to power but, in any case, neither is it a question of saying "I must have another position here and I am going to look at the one beside me to see if I am better or worse, or wonder whether there will be compensation or not". What we can say, and I say this with legitimate pride, is that we were the sick patient of Europe in 2012 - you know the story very well - and today we are a country that can grow faster than 3% this year and that has emerged from the depths of one of the most serious crisis to hit the Spanish economy.

Q. For both of you. In Romania, Prime Minister Victor Ponta has been recently accused by the anti-corruption authorities of forgery of documents by private signature, tax evasion and money laundering. President Iohannis, how will you continue to collaborate with Victor Ponta's government and with Victor Ponta personally, and what is going to happen? What comments do you have on the prosecutor's accusations?

And for the President of the Government, I would like to ask you what happens in Spain when a senior member of the government is accused by the public prosecutors.

Mr. Iohannis. My point of view on this matter is well-known. I have nothing more to add, but I stand by what I have said previously. As regards the rest, I think we should focus on our relations with Spain today, but we will continue to collaborate institutionally so as not to leave things in the air.

President of the Government. It appears you have two intentions with your question. What happens in Spain if a public prosecutor accuses a member of the government? I have been fortunate enough for no public prosecutor to accuse any member of my government and I do not want to see what could happen if that were the case because it would then have happened and I don't want it to happen.

Q. Mr. President of the Government, I would like to return to a previous question. For the gesture and words you used when answering about minister Luís de Guindos, I am not clear whether or not you believe that his chances of being elected President of the Eurogroup are slimmer today than they were yesterday, especially since an agreement was reached by all Eurozone countries to resolve the crisis in Greece.

In any case, I would also like to ask you two very specific questions about national politics. On Saturday, during your speech at the PP party conference, you mentioned neither the measures your party colleagues had proposed for electing the party president with all members, nor the possible electoral reform. I would like to know if you support them, if you agree with them, if you will promote them and, above all, if, in the case of the Elections Act, you believe there is time, as with the budget, to be able to approve it before parliament is dissolved.

Furthermore, now that the government is lowering taxes, and it was approved by the Council of Ministers on Friday, I would like to ask what you think about the other regional governments that are considering tax increases under new charges; for example, in environmental affairs or even, as announced today by the City Council of Madrid, to set a tax on withdrawing money from cashpoints; along those lines.

President of the Government. As regards your first question, I think what I said to your colleague was quite sufficient. In other words, I have nothing more to add on the matter.

As regards your questions on national politics and specifically with regard to the recent conference, I did not actually make full reference to each and every one of the topics discussed at the conference; I did however refer to the matter of increased participation by members in the election of all party bodies and I even spoke about the primary elections. Naturally, what we want to do is something serious, on which action is actually taken, because I do not want to see things like those we have seen recently. Everyone has primary elections, but only one candidate comes forward. Listen, we are going to try and proceed with at least a modicum of common sense.

The Partido Popular has taken steps at this party conference and the Partido Popular is going to move faster than the other parties; but we are going to try and do things sensibly, with common sense and with a view to improving the current situation. We are not going to produce propaganda because, at the end of the day, that leads nowhere, as we have seen in the past with certain primary election-related issues.

We spoke about the electoral reform; we spoke about the Spanish Constitution, about its validity, about whether there is anything that can be done in the future; we spoke about transparency and you ask me if I agree. Of course I agree. It would be more surprising if I did not agree because that could mean that somebody had included something behind my back, without me realising. No; we are all in agreement and we are going to try and propose some important innovations in both our election manifesto and in the future.

As regards taxation, you are absolutely correct, our traditional position as a party - because that is what we believe - is that the more resources left in the hands of society, the better those resources are used, especially in terms of achieving the main objective, which must always be job creation and economic growth. The existence of entrepreneurs is undoubtedly very positive news.

We raised taxes, as you know, because we were in an entirely impossible situation and we did so only a few days after coming to power. We will now start lowering them as much as possible within the scope of our possibilities. By the end of this legislature, the vast majority of Spaniards will be paying less Personal Income Tax than at the start, and the same can be said for Corporate Income Tax.

As regards the regional taxes, I am not going to criticise the decisions of others here and now, but I would call for extreme caution in this regard. The tourism sector is currently working very well. We are the country with the second-highest number of inbound tourists; over 65 million people come here. Tourism accounts for 11% of Spanish gross domestic product and over two million people work in the sector. One of the issues I had to fight over, now that VAT is such a fashionable topic, was to maintain the intermediate rate of VAT - now at 10% - for restaurants and hotels, whereas some other countries have unfortunately imposed a 23% rate of VAT on restaurants.

Hence, this is a sector where very careful steps need to be taken and, of course, I am against regional taxes, eco-taxes and some other things we are starting to see emerge in various parts of Spain. Imposing such measures will not improve governance and doing so may well prejudice many people without wishing to do so.

Thank you very much.