Press conference by President of the Government following meeting of European Council

Brussels

President of the Government: Ladies and gentlemen, a very good afternoon to you.

I would like to start my speech by expressing my congratulations to the European Union for having been awarded the Princess of Asturias Prize for Concord. You have often heard my profound conviction that the European Union is one of the most noble and successful political projects in history. The Princess of Asturias Prize recognises these values, the overcoming of the clashes that have marked out history to create a future of peace and prosperity for the coming generations of Europeans. Sixty years after its foundation, the European Union continues to promote policies designed to unite more than five hundred million people and improve their everyday lives.

My congratulations, therefore, to Presidents Tajani, Tusk and Juncker, and through them to all the citizens of the European Union, the real recipients of this prize.

Today, fortunately, we have met in circumstances of greater confidence and stability than for a long time: the economy has improved and confidence in the European project has also improved. Along these lines, the work of the European Council that has concluded its meeting today has been guided by a clear objective: the protection of our citizens and the attention to their concerns and needs: their security, their economy and their model of confidence.

At this European Council meeting we have reaffirmed our efforts to combat the scourge of terrorism by close coordination between our countries. To this end, we have given a boost to the creation of mechanisms to control the persons who enter and leave our territory, the databases needed for this and the automated methods to authorise travel to European territory. These instruments will help us combat the barbarous terrorism that seeks to question our way of life of freedom and democracy.

We have also stressed the need to combat terrorism at its source of radicalism and hatred, which are phenomena that today make use of the Internet to achieve their perverse aims. That is why today we have proposed to increase the resources allocated to the fight against radicalism, calling on the support of the industry controlling Internet access and its content providers.

As you know, the fight against radicalism on the Internet has been a priority for Spain for years. An example of this has been the recent reform of our Criminal Code on the question of indoctrination and grooming on the Internet with the aim of carrying out acts of terrorism This has allowed our judges to hand down rulings against people who are guilty of these crimes and to the committed participation of our country in international initiatives designed to combat radicalism through the Internet.

In addition, at the initiative of Spain, this European Council meeting has dedicated special attention to the victims of terrorism, as reflected in the Conclusions document we have approved. Our country is the promoter of an important initiative in this respect: the preparation of a European Charter on Victims' Rights, which provides certainty regarding what their rights are and strengthens their protection throughout the European Union as a whole.

At this Council meeting we have also addressed questions related to the defence and external security of the European Union in depth, in line with the work we began to carry out a year ago, when we implemented the European Union's new global strategy. In this way, through our actions in favour of peace and stability in our neighbourhood and in other parts of the world, we are also contributing to the protection of the EU and of its citizens. In short, the aim is to provide greater certainty in the everyday life of everyone.

In addition, the Europe of defence is one of the areas where we can make firmer progress in European integration. Spain is one of the main promoters of this policy, which aims to gain greater strategic autonomy for the EU. This commitment is reflected in our participation in the military operations carried out by the European Union since its inception and to which we are at present the largest contributor.

I believe we can feel satisfied because one of the conclusions of this Council meeting is that we emerge with a definite agenda to launch permanent structured cooperation within a reasonable period. This cooperation will provide the EU with the necessary capacity to serve on the most demanding missions.

We have also debated on the European Union's rapid response mechanisms. For the last ten years, Spain has been contributing to the EU's combat groups, because we believe that this is a useful tool to deal with the crisis.

Lastly, I believe that the involvement of the European Commission in defence matters through the European Defence Fund is a historic event and good news. We hope to maintain fluid dialogue with the Commission in managing these funds. All this will benefit our industry, particularly SMEs.

We have also talked at this Council meeting about economic questions in an environment of greater optimism than when we talked a few years ago. Europe is emerging from the crisis with growth in all its countries, but in Spain it is particularly robust. The European Council meeting in June has backed the country-specific recommendations for 2017. This year, Spain has received three recommendations, one fewer than in 2016, and also fewer than countries such as France, Italy and Portugal, and only one more than Germany and the Netherlands. The lower number and continuing nature of the recommendations reflect the 180-degree turn taken by the Spanish economy.

I should remind you that, for example, in 2013 we received nine recommendations and thanks to the effort of the Spanish people and the reforms undertaken, Spain today is competitive, is growing, and is creating jobs. The data prove it: in 2016, the Spanish economy grew by 3.2%, leading the major economies in the Eurozone and at practically twice the rate of the Eurozone as a whole. This growth has led to strong job creation, amounting to half a million new jobs per year since 2014. And since the low point of the crisis, the number of unemployed has fallen by more than two million, at 2,023,000.

In addition, the data for 2017 confirm the strength of the recovery. Spain continues to lead growth in Europe, with a rate of 0.8% in the first quarter, again above the Eurozone figure, which translates to 3% in year-on-year terms. At this pace, the Spanish economy will reach the pre-crisis level of its gross domestic product in the first half of this year.

The government now forecasts that we will grow by at least 2.7% in 2017. I say "now forecasts", and other bodies are more optimistic and are revising up their forecasts for 2017: for example, the Bank of Spain to 3.1% and the CEOE and FUNCAS also estimating growth of 3.2%.

Job creation is also maintaining its strength. According to the Active Population Survey (Spanish acronym: EPA), there are 18,438,000 people at work in Spain, in line with the latest figures on National Insurance contributors, which shows we have more than 18,300,000 people paying in. Specifically, and according to the latest figures available, which are for May, nearly five hundred thousand jobs, 496,359 to be precise, were created in the first five months of the year.

In 2016, we also complied with the deficit target of 4.5%. In 2017, we will reduce the deficit to 3.1%, and emerge from the Excessive Deficit Procedure in 2018.

Spanish growth is also balanced, with the lead taken by the foreign trade sector and competitiveness. The latest figures show that this trend is continuing. Exports of goods have grown at an annual rate of nearly 10%, an enormously positive figure. They grew by 9.8% to April and have once more posted an all-time record.

And it is precisely about growth, jobs and competitiveness that we also talked at this Council meeting. We have focused on two major themes: the international trade and the internal market.

With respect to international trade, the European Council has repeated its conviction that trade contributes to the creation of wealth and jobs. That is why it is necessary to promote it and combat protectionism. Spain has supported this idea because in our experience opening up to the outside world has always led to growth and job creation. The latest figures provide a magnificent example of this: for the first time in its history, Spain has had a foreign surplus for four straight years, and this has led to opportunities, growth and jobs.

But I have also supported the idea, and it is included in the Conclusions, that opening up to the outside world must be in conditions of equality. It is important that all countries respect the same laws and aim to ensure respect and promote strict standards.

Spain has continued to promote trade agreements. We have once more pronounced ourselves in favour of advancing in the negotiations with MERCOSUR and with Mexico, and this is being done.

With respect to the internal market, this European Council meeting has reviewed the progress made in the Digital Market, the Capital Market Union and the Energy Union. The construction of a complete internal market that functions well is one of the pillars of the European project and has always been a priority for my government. I am going to refer to two specific areas, the Energy Union and the Digital Market.

You already know the importance for Spain of making progress on the Internal Energy Market. This means, in particular, increasing our interconnections with our partners. Greater interconnection means more secure and cheaper energy, but it also means having a higher level of ambition with respect to renewable energies, and this is particularly important at a time when we are supporting our energy objectives and position on climate change starting in 2020. The Conclusions of this Council meeting include the need to continue making process to achieve our objectives in relation to Energy Union, including interconnections.

The other subject I want to refer to is the digital area. The digitalisation of the economy is a reality of which Europe has to make the most it can. I am satisfied that this European Council meeting wanted to give the boost to this subject that is so necessary. The digital area, as included in the Conclusions, must be understood from a broad perspective, which covers all the aspects related to it: markets and infrastructures, but also cultural, social and cyber-security, and others. All these must receive a boost at a European level. Thus for example, I believe that Europe must do more to reduce the digital gap. To do so, and this is what I said to my colleagues, we need policies that support training and the adaptation of workers and thus SMEs - small and medium-sized enterprises.

The digital drive is also a priority for my government. To this end, in February 2013 we approved the Digital Agenda for Spain, with the same idea of a global vision.

In addition to economic and security questions, the European Council has become more concerned with a basic challenge, which is migration policy. We are continuing to work on its external dimension, promoting closer associations with the countries of origin and transit, and on its internal dimension, boosting improvements to the system of border controls and international protection for refugees.

In this debate on migration, Spain has supported the policy we have been carrying out with our partners and that has given positive results: the construction of relations of trust that promote development in countries of origin or transit and make it possible to fight against the human trafficking organisations that form part of organised crime.

With respect to the reform of the common European asylum system, Spain has always defended, and continues to do so, the idea that the principles of solidarity and responsibility must always take into account the work that is being done by Member States such as Spain, which make great efforts in surveillance of the external borders of the EU. We believe that it is important for the future regulation to take into account this effort that is to the benefit of all.

On another front, at this European Council meeting, the British Prime Minister, Theresa May, announced that next week she would present a proposal on the rights of citizens. We are glad that priority is being given to citizens, which is what Europe has championed since the start of the process. We will analyse in detail the British proposal to find a formula that is most beneficial to our citizens.

Also on the matter of Brexit, we had a meeting of twenty-seven countries to exchange our impressions with our chief negotiator, Michel Barnier, on the first round of talks, which as you know, began last Monday.

At the same time, the twenty-seven have adopted a joint proposal of Presidents Tusk and Juncker on the procedure relating to the relocation of the European Medicines Agency and the European Banking Authority, both of which, as you know, are at present located in the United Kingdom. Under this procedure, the Commission will analyse the different candidatures using objective criteria and the decision will be taken in November.

As you know, the Government of Spain has presented Barcelona's candidature as headquarters of the European Medicines Agency. We are convinced that Barcelona meets the best objective conditions, above all, to guarantee that the Agency's activities are not affected by the move. This is particularly important in the case of the European Medicines Agency, whose work is so important for the protection of people's health.

To sum up, as you have seen, it has been an intense Council meeting, covering many very important issues. There has been an intense discussion, but also efficiency in resolving the issues. The economic crisis and its effects on the European project is increasingly something we have left behind us, the economy is recovering, the European Union is advancing and at the same time the confidence of our citizens in a better future is growing.

Thank you very much. I am available to take questions.

Q: I would like to ask you about this proposal made by the British Prime Minister. Although you still have to analyse it in more detail, what do you make of these ideas that she has left us with at this Council meeting: about not expelling any European citizen, or that they should keep their rights after five years? Do you believe that Spanish citizens who live there can today have a little more peace of mind?

And with respect to the Socialist Party, I'd like to ask you if you have talked with Pedro Sánchez, and if you still are confident that he continues to support the defence of the unity of Spain.

President of the Government: I haven't talked with him, but I am prepared to talk whenever he wants. I don't have any doubt that Pedro Sánchez will support the unity of Spain and national sovereignty. I couldn't dream of him doing otherwise. So I repeat, I believe that on this subject and on others we will have to make an effort to understand each other, because there are questions of State that are out there, and I am fully and absolutely certain of what I am going to do.

With respect to the proposal made by Ms May, it has been a proposal only on one very particular and very specific issue. It is a proposal that she has also said she would make public, probably in more detail, next week and that she will present to the British Parliament. But it only refers to one of the three issues on which the European Union believes progress should be made so that we can start the second phase, which is the phase in which we will talk about what the relations of the European Union will be with the United Kingdom in the future. It refers to one of the aspects, the most important it's true, at least for me, which is citizens' rights. But there are also two issues on which we have to make progress: first, the economic contribution of the United Kingdom to the European Union, and also the issue of resolving future relations in Northern Ireland and Ireland.

The proposal, I repeat, which has been presented in general terms, is that all European citizens who have been in the United Kingdom for five years, and this time of five years will begin to count as from a date that has still not been decided on, will have exactly the same rights as British citizens. Those who have been in Britain for less than five years since that date which, I repeat, has not been determined, will be allowed to stay so that they can meet the requirement of five years and acquire these rights. But we don't know what their situation will be until they have stayed for five years.

So for me what is most positive is that there should be talk about the rights of citizens. We have confidence in Michel Barnier and we are absolutely convinced that Michel Barnier will defend the rights of citizens; of European citizens who are in the United Kingdom, and thus also of the Spanish ones; and also - and this is important - the rights of the British people who are in the different countries of the European Union, and many of whom, as you know, are in Spain.

We are at the initial stage. The talks began, as you know, on Monday, and as I said before, you make your own path as you progress; and I hope that in the end what emerges is something reasonable, and of course that no Spanish or European citizen is harmed by these decisions, none.

Q: I'm sorry to insist on this point, but the statements made by Ms May this morning suggest that some of the details will not only be linked to the document that they present on Monday, but to how the talks develop, that's what she said. Are you concerned that on this issue citizens may end up being hostages to the relative ease of reaching an agreement?

And also, I would like to know how you saw the French-German axis, the entente between Macron and Merkel. Today their press room was full; there was practically no room there. Are you concerned that you could in some way suffer from a "minoritisation" in the face of so much power?

President of the Government: No. I've already given some press conferences with Ms Merkel and on Friday I did so with Mr Macron. But it's just that this is the first time that Mr Macron has attended a European Council meeting, and it seems normal to me that he should hold a joint press conference with Ms Merkel. But we are not going to suffer any "minoritisation"; we won't and nor will anyone else.

We are going to continue to defend the interests of Spain and also defend the interests of all Europeans, because we are among those who are most clearly committed to greater European integration, because we like the project, because it responds to our history, because it has been very good for the general interests of the Spanish people and because we are absolutely convinced that it will continue to be so in the future.

So this is something that seems worth having held.

If there is no agreement on these issues, you know what happens: the talks come to an end, there is a period of two years, but they can continue if there is unanimous support. So I don't have the slightest doubt that at the end of the day there will be an understanding and an agreement will be reached, above all on the most important issue, which is people's rights. I said it on the first day: for me the priority is people's rights and then there are the rest of the issues. In this case, the money that the United Kingdom has to contribute, the issue of Ireland and there are other issues that are also important. But we are at the beginning of the beginning.

There is a proposal that has been made by Ms May: everyone who has been there five years, counting from a date that has not yet been determined, already has the same rights as everyone. We are going to see what happens with the rest, we'll talk and we'll see how this ends.

Q: Will Spain accept different conditions in the Brexit talks for Gibraltar in terms of free movement or the internal market?

President of the Government: No. On the issue of Gibraltar what we accept is precisely what appears in the guidelines that the European Council has given to Mr Barnier. That is our position. We believe that it is a reasonable and sensible position, and any decision has to be discussed between the United Kingdom and us. This is what we accept and, I repeat, it is what has been approved unanimously by the European Council.

Q: I'd like to know, Mr President of the Government, whether the sudden change in the position of the Socialist Party with respect to the Free Trade Agreement with Canada has been met with surprise or perplexity by your European partners.

Also with respect to the Socialist Party, I would like to know your opinion on this proposal that was accepted by the last Federal Committee to consider Spain as a multi-national State. Do you understand the PSOE's position with respect to Spain? Do you believe it may create political weakness in the face of the separatist challenge?

President of the Government: With respect to the second issue, two things were said there: one, which seemed very good to me, is the statement, which by the way is also included in the Constitution and I wouldn't expect anything different, on national sovereignty; in other words it is the Spanish people who decide what they want their country to be and not only part of the Spanish people. This is something that appears in the Spanish Constitution and in all the written constitutions in the world, where as you know there is no right to self-determination, which is what it would mean to breach this national sovereignty. There have only been three: that of the Soviet Union, that of the former Yugoslavia, and that of Ethiopia. In all the other countries of the world the right to self-determination is not recognised; I'm referring to all those that have a written Constitution.

I'm not in favour of the term "multi-nationality"; you'd have to explain precisely what it consists of. I am in favour of something that, in fact, is enshrined in the Constitution and is understood very well: in Spain there are nationalities and regions. That is what we agreed at the time, what we voted for, what we agreed and what had the support of the immense majority of the Spanish people; and I don't think that there is any sense in going over and over this issue for reasons that have in fact not been explained to us, because no one has told us what this means precisely, in other words what laws would have to be changed, what legal effects this would generate, etc., etc.

What I believe is that it is a good idea to be clear and that people should understand you completely, and that you should say whether or not you agree - I believe that they really do; I certainly do, it's what I say - that what our Constitution says is what we all think here in Spain and in the vast majority of countries in the world: which is that we believe in national sovereignty, and it is up to the citizens of a country to decide on their own country, and that it is not the citizens of different regions, communities or nationalities of a country who decide on it alone.

With respect to the Free Trade Agreement, there has been a very in-depth debate on free trade which, once more is reaffirmed by the European Union, and I myself am absolutely in favour. As I have said in my initial speech, whenever Spain has gone abroad, whenever Spain has looked beyond its borders, things have gone better for us.

Really, we have overcome a very tough crisis. And I have to say that in overcoming this very tough crisis the foreign trade sector has been absolutely decisive, absolutely so. The number of Spanish people who started to export, the number of Spanish people who looked abroad, have done something that no one will ever be able to pay for. We have had a foreign trade surplus for four years and the government forecast is that in the next four years we will also have a foreign trade surplus, because this has created a culture of looking abroad and selling abroad. This is essential for our economy, because it is people who work here, who sell their products abroad and then bring money back to Spain.

So this demonstrates that the Spanish economy today is competitive and that our companies and our workers are doing things well and it is undoubtedly one of the things of which I am most proud. So for us, Spain, we will always continue to support free trade.

It is very difficult to explain what the opposition to a Free Trade Agreement with Canada consists of, because it is very difficult to find a country in the world with the standards that Canada has, which are the most similar to those of the European Union. If you say "you've reached a Free Trade Agreement with a country..." - I'm not going to give names, for reasons you will all understand - "that has characteristics of this or that kind..."; but Canada is an absolutely democratic country, it is a liberal country, it is a country in favour of trade, with environmental standards that are similar to ours, and so it is really difficult to be against this. Well, if in the end they are going to abstain... The important thing is that it should prosper, because, of course, it would be very difficult for me to explain here why, because of Spain's fault, we won't have a Free Trade Agreement with Canada, because you know that these agreements need the vote and support not only of the European Parliament, but of all the Parliaments of all the countries of the European Union.

Q: Mr President of the Government, I have two questions, and a comment. Should I then understand that you are leaving the initiative for this meeting with Pedro Sánchez for the general secretary? In other words, you are not going to call him in this new era?

Then there are two questions. The procedure approved last night by the European Council to choose the new headquarters of the European Medicines Agency: is it good for us? Does it harm us? Does it benefit us?

And second; the Regional Government of Catalonia wants to open up five hundred new places for the Mossos regional police force. The national Tax Authority has said that by law, the law on replacements, this cannot be done. I would like to know whether you believe that in this context of insecurity we are suffering in the West, we shouldn't perhaps even change the law so that the Mossos could offer these vacancies they are calling for, above all taking into account that they have not posted any vacancies for six years?

President of the Government On this matter, if it can't be done by law, then of course, what you can't say is that we must break the law. In any event, I don't know what the technical reasons you referred to are, and so I trust what the Ministry of the Treasury says about this matter.

With respect to the criteria for choosing the European Medicines Agency, for me the most important issue is that this will be made objective; in other words, there will be fewer subjective components, there will be a report by the Commission to decide whether this bid is good, whether that one is bad, whether this one has disadvantages or that one doesn't... Because, of course, it's not the same that there are some criteria based on which people can give their opinions and decide, and that there are none. Put simply, any city in any country should be exactly equal for all purposes, whether or not it has the right conditions for setting up the Agency or not.

So I have always liked criteria and of course I like objective criteria even more. I believe this is positive. This will be decided in November, at a General Affairs Council meeting; but first it will pass through various procedures. Among others, I believe that it will also return to the European Council; but the final decision will be taken by the General Affairs Council.

With respect to the other thing, I'm not going to go into detail now, because it doesn't contribute to anything. The only thing I will say is what I mentioned before: I'll have a meeting whenever Mr Sánchez wants, and what's more I think it's good that we should have one.

Q: A couple of questions from me too. On the matter of trade, do you think it is necessary to keep watch on foreign investments, as has been proposed or even suggested for inclusion in the European Conclusions? Do you support the proposal made by Germany, France and Italy of even creating a European mechanism to block them, if necessary, in strategic sectors?

And returning to the subject of the proposal by Ms May on the rights of citizens, as it is such an important issue for you, I don't know whether you could at least tell us if you think it is a good start, as Chancellor Merkel does, or whether you are somewhat more sceptical, as President Juncker is.

President of the Government: I think it's good that the first thing that is being talked about is citizen's rights. I think it's good that all those people who have been in the United Kingdom for five years should have precisely the same rights, for example, as the citizens of the United Kingdom. You will understand that I prefer a better regulation for all those people who have not yet been in the United Kingdom for five years, and so we will fight on that front. But we are only at the start of a negotiation.

And I'm not going to say that it sounded bad, but I believe that without any doubt, it could have sounded better. I repeat again, this negotiation must be led by the person who has to lead it, and that is Mr Barnier, who will report when necessary to the Council and will listen to what we say; and at the moment I believe it is very early to go into details about this matter.

I am in favour of free trade and I don't like protectionism much. In fact, now we are negotiating a Free Trade Agreement with Japan, and I hope it is closed soon; and we have been very persistent, both the Prime Minister of Portugal and myself, to push for a negotiation of the Free Trade Agreement with MERCOSUR. I believe that it is very positive for the countries of MERCOSUR: Brazil is a very big country, and Argentina, Paraguay and Uruguay. I was recently in Brazil and in Uruguay, and in Brazil and in Uruguay I see a firm and decisive will to negotiate this Free Trade Agreement; and also when I was - in February I believe - in Spain with the President of the Argentinean Republic, Mr Macri, there was also a willingness there.

In other words, there is a willingness on the other side and now there is a decisive willingness here as well. Then as you know these issues always have their problems that crop up and there are things that have to be negotiated and discussed. But the fact is that, as well as being positive... History demonstrates it: whenever there is trade, everyone gains: consumers, because they can buy cheaper products; producers or distributors, because they can sell in many other places. What does not make any sense is that in the world in which we live you can only have one market, whether Spain or Europe. We want to have the greatest number of markets; if possible, a market that brings together the whole world. That is wealth and that is something very positive for everyone.

So that is my position. Having said that, a European mechanism to block investment in strategic sectors? That undoubtedly is not included in the Conclusions and I have not heard any talk of it, and they would have to explain it to me in great detail. I tend to give opinions on the basis of having previously studied what I have to give an opinion on, right? But keeping a watch over foreign investment...

Today what is included in the text that we have approved is, first, a clear commitment to free trade; second, the need to reach new agreements - they cite MERCOSUR and some Asian countries, and also Mexico, which we have also called for; and third, there are some petitions that have been made to the Commission so that it can give its opinion on the investments in strategic sectors and on the reciprocity that must be demanded from those with whom we have free trade.

We are obviously prepared to see what it is that the Commission has for us, and study it. One of the things said by some of the people who were there is that we should not be ingenuous. Obviously, we should not be ingenuous, but if you believe in free trade, you have to support free trade and explain why it is good, because if not, in the end we will go nowhere. We all know what the decisions adopted by other very important countries in the global community are. And I believe that Europe - and of course I myself to the best of my abilities - am going to do this, which is to defend free trade because I believe that it is what is good for people.

Thank you very much.