Speech by President of the Government at closing ceremony of Connected Hub Congress on automotive sector

Barcelona

Mr President of the Regional Government of Catalonia; Mr Minister for Public Works; Regional Councillors; Mr Government Representative; Mr Deputy Mayor of Barcelona; Mr President of Fira de Barcelona; Mr President of ANFAC; Mr President of Automobile Barcelona; public officials; ladies and gentlemen,

Thank you very much for your invitation and for attending this event.

Over the course of its almost 100 years, the Barcelona International Motor Show has taken on great prestige. It is a must-attend event for the world of motor vehicles, it is the best showcase for innovation in its sector and it is also obviously a very important event for the international projection of Barcelona and Spain. Its new name, far from being a formality, involves a decisive commitment to technology, which is aimed at improving our lives.

The automotive sector is heading up the two main current technological revolutions: on the one hand, the energy revolution, with the electric vehicle; and on the other hand, the digital revolution, with a connected and automated vehicle.

At this Connected Hub Congress, which we are bringing to a close here, we have been able to observe this in an unbeatable fashion and I believe that we should welcome this technological ambition with excitement and commitment. For that reason, I don't want to waste any time in conveying a message to you, which is the Government of Spain's firm commitment to the strategic area of innovation in motor vehicles.

As you are aware, Spain is a country that is closely identified with the world of motor vehicles. You don't have to go far to see that. Right here in Martorell, we can see overwhelming proof of our commitment to this industry; an industry which, in addition to its economic impact, has extraordinary social repercussions. In this very province of Barcelona we can see this, because people from all over Spain flocked here to seek out new opportunities and, in passing, helped convert this city into one of the capitals of the motor industry and enrich the plural and open society of Catalonia.

If the effect of the automotive industry has been highly beneficial to date for our societies, the technology revolution that is gaining ground now must be equally as beneficial, because over recent years new technologies have redefined our reality and their impact is also increasingly gaining ground.

This new revolution places major challenges and opportunities in our path. At the start of the year, the European Commission drafted a detailed report on Employment and New Technologies, in which it reach the conclusion that digitalisation requires greater skills from workers in new technologies and, if we do not extend our technological capabilities, 825,000 jobs will remain vacant due by the year 2020.

Faced with realities such as these, we can see the close relationship between connectivity, prosperity and well-being, which is why the subject of our time here today is connectivity and openness, because connecting means opening up, overcoming barriers and sharing. All of us who form part of this extraordinary shared project, that is the European Union, see this every day. That is why the future requires innovation and connection; we are obliged to have open minds and an entrepreneurial spirit and this invites us to comprehend that in order to compete in a global world and increase the well-being of our citizens we must avoid any temptation to disconnect and isolate ourselves. Only by being connected will we uncover new opportunities; those that arise from joining forces.

Ladies and gentlemen,

Over the course of these days we have seen a glimpse of what tomorrow's motor vehicle is going to look like and, as you are aware, this tomorrow begins today with research into connected, autonomous vehicles, and vehicles fuelled by alternative energies.

Spain, as you know, manufactures the second-highest number of cars in the European Union and is the eighth-ranked manufacturer in the world. I suggest that we also take on the challenge of becoming a leading manufacturer of vehicles for the future. I would urge you to strive to become the second-largest leading European manufacturer of vehicles driven by alternative energies.

We know that manufacturers plan to launch some 40 models of electric vehicles in the coming years. Why don't we manufacture them in Spain? The government will offer decisive support for efforts at innovation by the automotive industry. This is an effort which, I would like to say, comes from a long way back and will enjoy continuity.

The Draft General State Budget increases the financial provision for programmes to support industrial investment and development, as well as the manufacture and acquisition of vehicles that use alternative energies. And, from a tax perspective, I can assure you that our system of tax deductions for R&D+i will remain one of the most favourable systems in the world. In this regard, I would like to share with you that the Budget for this year, despite a drop in public spending, will see an increase of more than 4% under the heading of R&D+i.

Ladies and gentlemen,

The automotive industry has been pioneering in understanding that removing barriers operates to the benefit of everyone. With 17 factories distributed around the whole of Spain, our country is one of the great global manufacturers and that is not only a source of pride; it is, above all, a bastion for our prosperity. The automobile industry accounts for 9% of Spanish industrial GDP and provides direct employment to 250,000 people and indirect employment to 1.8 million.

Nowadays, both Spain and our automotive industry are enjoying an optimistic period, but this hasn't always been the case and the confidence and investments in the automotive industry have provided key support in the worst moments of the economic crisis, and they are key to us successfully tackling a new phase of growth. We must acknowledge and affirm this in public, because it is true. We are talking about investments of close on 10 billion euros, of which 6 billion have already been made. I repeat, at the worst moment in our recent economic history.

Two years ago, when I addressed you here, Spain had barely started to take its first steps on the path to recovery; we can now fortunately say that our pace down this path has stepped up a gear. We have just revised our growth forecast for this year up to 2.7%, because in the first quarter alone we have grown by 0.8%, at a rate that more than doubles our European partners. We have managed to recover a little more than 60% of the jobs shed during the crisis, with the creation of almost 2 million jobs which means that Spain now heads up the unemployment reduction statistics in the Eurozone.

Job creation remains the absolute priority of this government. We have one goal: to see 20 million people in work by the year 2020. And we can achieve this if we continue down the path of sensible policies, stability and reforms. Stability and moderation are beneficial for everyone.

In relation to employment, I want to say to you that the automotive sector has clearly played its role. During the tough years, between 2013 and 2015, our factories created almost 6,000 new jobs. Furthermore, we are talking about stable, quality jobs, which we are now encouraging.

The positive effect of this industry on the economic fabric is also worthy of mention. Spain exports 85% of its production and this figure has grown by 7% from 2015 to 2016 to stand at a total of 2.4 million vehicles. This means that the automotive sector is responsible for no less than 18% of our exports. And I want to remind you, as you are already well aware, that a decisive factor in the recovery of the economy of our country has been the foreign trade sector, with four straight years in positive figures.

The first figures available for the year 2017 are also good, and we must maintain this pace that is so beneficial for our trade balance. That is why the government is going to do everything it can to back this boom by modernising ports and logistics platforms, and through investments, such as those the President of the Regional Government of Catalonia mentioned in his speech, of the level of importance of the Mediterranean Corridor; with a decisive commitment to boosting our industrial fabric and improving our energy framework, and also through an equally important commitment to vocational training tied in to companies.

Ladies and gentlemen,

Our economic recovery is the best possible spur for the motor industry. While in 2012 we saw our production levels drop to below 2 million vehicles, in 2016 we saw almost 2.9 million vehicles come out of our factories and this year, in 2017, we want to hit the figure of 3 million. Together with manufacturing, car sales in the domestic market have also seen an upturn in consumption, growing by 11% to 1.15 million from 2015 to 2016.

I will end now. While the challenges we face are many, we must not let our ambitions wane. We are a great country, with the second-highest number of inbound tourists in the world, with a great natural and cultural heritage, and with infrastructures that are among the best in the world; furthermore, we have companies that are leading the way into the future in their respective sectors, such as civil engineering, communications and banking. We are the second-ranked country in terms of exports of goods and services in the whole of Europe, behind only Germany.

But our main asset is our people, all of the people of Spain. The automotive sector committed to us when almost no-one else did. Investments have been made in many parts of the country, including here, in Barcelona, the unrivalled capital of a prosperous Catalonia in a thriving Spain that is firmly anchored in a modern and competitive Europe. The Spanish people will not forget this commitment and I am convinced that, as tends to happen in those who place their trust in our country, this will be a great success.

Thank you very much.