Statements by President of the Government in Lower House of Parliament

Lower House of Parliament, Madrid

Statement upon arrival at Lower House

President of the Government.- I would like to express condolences, in my own name and also on behalf of my party and of my parliamentary group, on the death of Txiki Benegas. He was a political adversary but at the same time a competent and capable man with whom you could speak and reach agreement. I remember that in 1992, when I was Deputy Secretary of the People's Party and he was Deputy Secretary of the Socialist Party, we spent a great deal of time discussing the Regional Pact of 1992, which was then decisive for the development of the State of Autonomies in Spain.

So, I repeat, my condolences, the sympathies of everyone and may José María Benegas rest in peace.

I also wanted to make a comment in relation to what is happening in China at this time and on the repercussions that this may have on the global economy and, above all, on the European and Spanish economies which is what obviously affects us most as Spaniards.

In principle, the Chinese economy, as you are all aware, is a very important economy and it is an economy undergoing a transformation process. At present there is less economic growth in China than there has been in recent years, but significant economic growth is still being enjoyed there. However, there have been repercussions on the stock markets and economies of other countries, above all on the so-called emerging nations.

In terms of the situation in Spain, I can say that things are calm. We are now going to debate the General State Budget. I believe that this is a show of responsibility. This gives security and certainty as well to the economic and social agents as a whole, and we can say that what is taking place in China will not have a major impact on the Spanish economy. The stock markets have fallen, but would seem to be bouncing back; and in the medium term there will not be any major change, firstly, because reforms have been undertaken in Spain which means that these situations of difficulty are affecting us now that we find ourselves in a better situation; then because the interest rates of the European Central Bank will remain low, because we principally export to Eurozone countries, because inflation is low and because that is good for our companies.

Hence, following today's debate we will maintain the economic growth forecast for this year at 3.3%, which will be the highest of all the countries in the European Union; we will also maintain the job creation forecast of 600,000 people finding work during the course of 2015; and today there was a positive figure in relation to the markets - we have issued three-month Treasury bonds at a negative interest rate, in other words, we are being paid to issue them.

Hence, I wish to transmit a message of calm. It would be ideal if what is taking place in China was not taking place, but I hope that things will soon calm down. And I repeat, in the short term, I can say, and indeed in the medium and long term, that this will not affect the forecasts of the Spanish economy which will remain at 3.3% growth for this year and the creation of 600,000 new jobs.

Statement upon leaving the Lower House

Q.- I wanted to ask you whether the government has taken a decision on the woman who has been imprisoned in the Canary Islands.

President of the Government.- That is an issue that we will tackle at the upcoming Council of Ministers meeting on Friday, the first after the holiday break. I have discussed this with the Minister for Justice. A six-month jail sentence has been handed down; there is then a second element to the sentence; and the truth is that this woman is in a very complicated and very difficult situation, with family circumstances that were taken into account in the prison sentence, and yet she has been imprisoned. So, the idea that the government has, is to grant a pardon on Friday, although there is a report issued that counters this argument, both from the judge and by the public prosecution.

I believe that the lowest possible penalty has been imposed in the sentence, but what we need to do is to go through with this to approve a pardon and thus allow her to leave prison, and hence the Regional Government of the Canary Islands will need to make a dwelling available to her, which she does not have at this time, in order to thus carry out the terms of the sentence and demolish her home.

So, in principle, the government, on Friday, in light of the circumstances, at the very first Council of Ministers to be held after the summer break, will pardon her. I believe that this is an issue of common sense because a situation has arisen that is profoundly unfair and I would go so far as so say is absurd, but it would be good if the Regional Government of the Canary Islands, and I would almost say essential, could resolve this issue of the housing, and this has been passed on to certain people.

P.- Has the PP already drafted a reform of the Constitution?

President of the Government.- Yesterday and this morning we said all we are going to say on the reform of the Constitution. The priority for the next term of office will continue to be economic recovery, generating economic growth and job creation. Aside from that, if there are other groups that that wish to do this, we are willing to talk, but we will not propose a reform of the Constitution in our election manifesto. We are willing to listen to those who wish to do so and we will see what they say to us and what they want to do to make things better. But, in principle, our priority will remain job creation, bedding down the economic recovery and continuing to improve the Spanish welfare system.