​Press conference by President of the Government

Madrid

President of the Government.- Ladies and gentlemen, a very good day to you all.

First of all, I would like to begin my speech by remembering all those people who have been injured this morning in the Rodalies [local commuter trains] accident in Barcelona. We wish them all a speedy recovery.

As you know, I have spoken with the President of the Regional Government of Catalonia, Mr Puigdemont, and have offered my assistance. The Minister for Public Works is already there and we have made clear that our collaboration with the authorities, as is only right, will be total and loyal, with the goal of recovering normality as quickly as possible.

As you are all aware, and as is normal, following the last Council of Ministers, I always appear to take stock of the first half-year. Before that, however, allow me to inform you that the Cabinet, after hearing of the favourable report from the Council of State, has authorised me to lodge an appeal against the unconstitutional nature of the reform of the Regulation approved yesterday by the Regional Parliament of Catalonia.

As you know, the sole intention of this reform is to approve, through a fast-track procedure, and without the most basic of democratic guarantees, the laws through which they seek to liquidate national sovereignty, the Spanish Constitution and the very Statute of Autonomy. To achieve this, as the Council of State indicates in its report, the right to political participation of parliamentary minorities under conditions of equality, as guaranteed by our legal system, may be violated.

By lodging this appeal, the government is meeting its obligation to ensure the law is upheld; and it is also defending the regional Catalan institutions and their public servants, who cannot be used at the service of an action that is blatantly unlawful.

Just yesterday, the Catalan Employers' Association - Fomento de Trabajo -called for the Regional Government of Catalonia to renounce its breakaway plans. Even the Chief Counsel to the Regional Parliament of Catalonia has recently clearly expressed his opposition to the process. Occurrences such as these show that Catalan society as a whole is highly plural and of a very moderate disposition.

This Catalan society also needs to be protected from a radical and divisive project that some are trying to force through. No referendum will be held on 1 October because the Constitutional Court has clearly ruled that this is unconstitutional, and hence, illegal. No referendum on self-determination will be held because this attempt goes against the very institutional architecture that has given Catalonia the highest level of self-governance ever.

The Government of Spain maintains its determination to defend the law calmly and with the moderation that the instruments of our rule of law have given it. As you know, I am always prepared to talk about the best way to collaborate with the institutions of Catalonia to the benefit of everyone. I have always shown this disposition and I still maintain that now, but no-one can ask me to negotiate the violation of a constitution that does not belong to me, or to the government, or even to Parliament, but rather that belongs to the Spanish people as a whole.

Ladies and gentlemen,

As regards the balance of this first half of the year, the fact that best sums up, in my opinion, this period is the constant upgrade of the forecasts.

Spain is growing and improving on a daily basis in the eyes of the whole world, as well as in the eyes of the people of Spain. I am not only talking about economic forecasts; I am also talking about the political climate in Spain and in Europe in general, as well as the institutional image of our country, which are all better now than they were a few months ago and present a clearly positive trend towards further improvement in the future.

Does this mean that we are not facing any problems? Not at all. We have some problems and, as I have just indicated, some of them are serious, but it is no less true that we are in a position to tackle them with our country in a much stronger position and enjoying recovery in all areas.

I will now try to briefly outline those aspects that allow me to make this diagnosis; I will refer firstly to the economy.

"Spain is enjoying its fourth year of economic expansion and job creation figures are wonderful. In the second quarter of this year, GDP overtook the level it was at before the crisis and growth is much higher than the Eurozone average. Thanks to the reforms, the economy has become more competitive, flexible and resilient. We have a dynamic services sector, increasingly geared towards exports which has now overtaken the construction sector and which, together with the recovery of the industrial sector, is contributing to maintain a sustained improvement in the balance of the current account. GDP is forecast to grow by 3.1% this year, and it may be even higher than this figure, since the boost given by the reforms carried out may be even greater than originally estimated". These words are not mine; they are the words of the International Monetary Fund in defining the situation of the Spanish economy just a few days ago and its diagnosis is unequivocal.

I will just mention three specific areas: growth, employment and the foreign trade sector.

Spain is indeed enjoying its fourth year of growth and the third in which it is growing by at least 3% per annum. The GDP figures for the second quarter, which have just been published today indicate growth of 0.9% on the first quarter and of 3.1% on the same quarter of 2016. With these splendid figures, it is more than likely that we will grow this year by at least 3%, which is the official forecast, as you know, that the government currently maintains. I would remind you that at the end of last year, 2016, when I appeared here before you, this forecast was for growth of around 2.5%.

We continue to be at the head of Europe, well above the average for the Eurozone. Today I have said that we have seen that Spain has grown by 0.9% in the second quarter and there are other countries that have also improved their figures: France, by 0.5% and the United Kingdom by 0.3%. We are hence growing above the Eurozone average, and also above such other countries as Canada, Japan and the United States. According to the forecasts made by the International Monetary Fund, we are, for yet another year, the country with the fastest rate of growth among developed countries on a global scale.

Furthermore, today, after seeing the economic growth figures for the second quarter, we can affirm that we have recovered the level of wealth we enjoyed before the crisis. This was one of the main goals for this year that I pointed out in my speech here back in December.

This economic growth - and this is the most important aspect - is translating into intense job creation, this year as well, in 2017. The reduction in unemployment shown in the Labour Force Survey (Spanish acronym: EPA) for the second quarter, published yesterday, is, quite simply, the highest on record since the EPA was set up. There are 340,000 fewer people out of work, at a rate of 3,785 leaving the unemployment queues each day of the quarter. If we look at these figures in annual terms, the fall in unemployment stands at more than 660,000 people.

We are also making strong progress on job creation: in the second quarter of this year we created 375,000 jobs, at a rate of more than 4,000 a day. Since the worst moment of the crisis, some 1.9 million jobs have been created. We are very close to reaching 19 million people in work and the target we had set for this term of office of 20 million Spaniards in work may even be reached before the year 2020. As I said before, the challenge is to continue beating expectations.

There are some important qualitative figures, and because they are important, I will mention them.

Youth unemployment, which is still very high, continues to drop: since June last year, there are 100,000 fewer unemployed young people and the youth unemployment rate has fallen below 40%, which we haven't seen since 2009. Since the maximum level that the youth unemployment rate hit, it has now fallen by 16 percentage points. It should be said that this reaction is taking place thanks to a 12% growth rate for youth employment, more than four times the average general rate.

The number of long-term unemployed is also falling strongly: over the last years, two thirds of the reduction in unemployment corresponds to people who lost their job more than a year ago. And the same can be said of households with all their members out of work.

These are all figures from the Labour Force Survey. If we look at the latest social security figures, there is something there that should also encourage us and spur us on to continue working hard in the future: in the first half of the year, 30% more jobs have been created than in the first half of 2016 which, as you know, was a good year for employment.

The dynamic nature of the foreign trade sector is also surprising us this year, in 2017, based on greater competitiveness of our exports. We have now enjoyed five years with a positive foreign trade balance, something that we have never before witnessed in our economic history. And furthermore, in May, exports rose by 15% year-on-year, while between January and May 2017, exports grew by 11% on the same period of 2016, to hit a record figure, a genuine all-time record. Nowadays, exports of goods and services represent 33% of our GDP and in a couple of years, if we do things right, this may well reach 35%. And Spain is the country from among the major developed economies, with the exception of Germany, that most exports.

So, these three elements: growth, employment and competitiveness, are what are certifying the health of our economic recovery, but there are also other positive figures that should encourage us to continue working hard in the future: the risk premium is now below 100 basis points - you will remember that at one point in 2012 it stood at 639 basis points - the confidence of economic and social stakeholders is at its highest for a long time; private consumption is growing as is investment in machinery and equipment; the industrial sector - this is very important - is very dynamic, with growth in May of almost 8%, and the construction sector is recovering strongly, two examples of which are that permits for new builds grew at a rate of 20% in April and property purchases were up 23% in the month of May.

Activity in the services sector also grew at a rate of close to 8% in May. And the arrival of inbound tourists is also very buoyant: 28 million foreign tourists visited up to May, 6.5% more than last year, and they spent 15% more than in the same period last year.

This all goes to show that Spain is now a more competitive economy and that it is growing and creating jobs at a higher level than the forecasts, because it is producing, exporting and consuming without incurring foreign debt.

Well, ladies and gentlemen, by way of summary, these figures, which may be a little overwhelming, are very important. They are so because they show the tremendous achievements of Spanish society in having turned a dramatic situation around in a very short time; they are also so because they establish a framework of confidence for the Spanish people and foreign investors, and they are, above all, because they constitute a guarantee that our forecasts can be met. But all of this, as I have said to you on various occasions, will only be possible if we maintain what has constituted the cornerstone of our economic policy in recent years: a commitment to fiscal consolidation and structural reforms in line with what has been done to date. And this must be done, furthermore, within the current institutional framework that requires agreements to be reached with other political forces.

So far in this new term of office, Spain, as a country, has proved it is responsible and has shown its commitment to stability, which has been very highly valued from outside our borders. And this is particularly true in relation to budget stability which, as I said to you earlier, continues to be an inescapable commitment.

We have set certain fiscal targets in line with our commitments to the European Union: specifically, with a deficit target of 3.1% in 2017 and 2.2% in 2018. Spain will be in a position to exit the excessive deficit procedure by 2018. The budget strategy which, together with other political forces that have loyally collaborated, the government has been able to set in motion in the first part of this year, and the approval of the Budget for 2017 have meant that the deficit target is within reach.

We are now working on the Budget for 2018, which we hope to push through by means of dialogue with other political groups, because this Budget is key for Spain managing to exit the excessive deficit procedure and to ensuring the path towards recovering all the jobs lost during the crisis.

Having said that, I would also like to say that all of this progress, in a strictly economic sense, does not mean anything if this is not immediately passed on to the lives of our compatriots. The quickest and most effective way to reduce social inequalities is through job creation, because unemployment is the most deep-seated cause of social differences.

It is important to recall that each month in Spain, more than 14 million people receive some form of benefit, subsidy or public aid. Hence, it is job creation that determines the possibility of maintaining and improving our social protection system, the sustainability of our public pension system, unemployment benefits, long-term care beneficiaries and, as is logical, our system of universal public health and education.

Ladies and gentlemen,

The Budget has also highlighted the level of political stability during this term of office. Political theory states that the stability of a government depends on the Budget and we have shown, in an unprecedented parliamentary situation in our modern history, our ability to reach agreements with different political formations to push through the State accounts. This, I repeat, is key for the continuity of our economic recovery, job creation and for improving the well-being and wealth of our people. This is the true benchmark of the stability of a government - its ability to push through the Budget; and, if this were not enough, I would also remind you that over these last few months, the government has survived a motion of no confidence with complete ease - a parliamentary session that only served to show that there is no viable alternative majority to the present one in the Lower House.

We are also showing that it is possible to govern in somewhat unusual circumstances, such as those we are seeing in this term of office. Over recent months, such important government initiatives have been approved as the following: the extraordinary investment plan in highways for the sum of 5 billion euros, which will be carried out through public-private collaboration, two renewable energy auctions, for a total of 8,000 megawatts, whereby we have met the commitments we took on within the framework of the European Union for the year 2020, the drafting of the Statute on Victims of Crime and the School Environment Plan.

Over these nine months, the government has submitted two agreements on spending targets and limits to the Lower House, which have been approved; seven draft laws; 19 Royal Decree Laws, of which 18 have been approved and one defeated in the first vote but approved in the second. Furthermore, 48 international agreements have been approved, some as important as the Free Trade Agreement with Canada.

Among these initiatives, some from the government and others from the opposition but backed by the People's Party, are such important issues as the parliamentary agreement for a State Pact on gender-based violence, which will be ratified in Parliament today and which we want to extend to the autonomous regions and the social stakeholders. I wish to thank the political groups for their willingness to agree on the terms of this pact that I offered them in my investiture debate.

As well as the measures proposed and the economic amounts committed, this agreement also sends out a message and a commitment from everyone towards women who may be suffering an abusive situation at this time. This is a way of telling them that they are not alone, that we remain concerned for them and that they should break free from this situation, in the certainty and knowledge that Spanish society stands with them, backs them and helps them.

This is the latest agreement to have been reached, but I could remind you of many others, such as the Public Sector Procurement Act, the Law on the Economic and Fiscal Regime of the Canary Islands, measures to boost the National Youth Guarantee System, the Royal Decree Law to protect consumers from floor clauses, compliance with the rulings from the European Court of Justice on the stevedore sector and the private copying levy, the very important Law on the Self-Employed, and the agreement on the electricity discount and the minimum wage.

These facts clearly show that the ability to enter into dialogue and agreement has stamped its mark on a complex stalemate situation that could have existed in Parliament. We are meeting the commitments we set in the investiture session - willingness to enter into open dialogue and a sincere desire for understanding.

I wish to acknowledge, here and now, the collaborative attitude of those political groups without whom none of this would have been possible. I specifically refer here to Ciudadanos, the Basque Nationalist Party, the Canary Island Coalition and the New Canary Islands party. With their backing, as well as with our allies from the Union of the People of Navarre, Forum Asturias and the Party of Aragon, we have shown that the most useful policy is the one that is able to seek out the common interest rather than adopting underhand, short-sighted tactics.

The ability to reach agreements and work together to the benefit of our citizens is the best example of leadership at a time of political fragmentation such as the present. Seeking to entrench oneself in a permanent stalemate, in sectarian prejudices or a policy of showboating does not lead anywhere except to exclusion at a time in which no-one should remain on the sidelines of Spain's recovery.

Ladies and gentlemen,

This commitment to dialogue has also extended to regional jurisdictions. We have set in motion a good number of the agreements reached at the Conference of Regional Presidents held back in January, including accountability. Hence, six months on from this meeting, on 17 July, the Monitoring Committee met up, at which it concluded that compliance with these agreements stands at a high level. The group of experts to study the reform of the system of regional financing has handed over its proposals this week; the study group on the sustainability of the long-term care system has also been set up, as has the National Civil Protection Council and the working group to study the social card.

Within the course of six months, two sessions of the Conference for Affairs related with the European Union have been held; one of which dealt exclusively with Brexit, which was very well received by the regional governments. And there was also a meeting of the Market Unity Council.

The agreements on the issue of employment, both on active policies and on public employment, are being complied with, with quantifiable results and the commitment to redouble efforts to speed up results.

Ladies and gentlemen,

On another note, I said to you at the beginning of my speech that things have improved significantly at a European level in recent months. European populism has clearly waned in the most recent general elections and the victory by [Emmanuel] Macron in France has given a renewed boost to the European project.

Furthermore, Europe is showing signs of cohesion and responsibility by remaining united without schisms in the negotiations with the United Kingdom on Brexit. Spain is satisfied at the way in which the priorities have been imposed in the negotiations and maintains its confidence in and support for the work being carried out by [Michel] Barnier. We are also contributing to the debate on the future of Europe post-Brexit. Defence, the fight against Jihadi terrorism, the management of immigration flows and greater economic integration and social cohesion must be the cornerstones on which the future of the EU is based. This should be the path that leads us to recover the confidence of Europeans in their institutions and their future.

I have had the opportunity to discuss all of these issues with my European colleagues at the numerous summits and meetings that have been held in the first part of this year: at three European Councils, in March, April and June; at two informal summits in Malta and Rome, in February and March; at another two summits of Southern European Countries, one of which, as you know, was chaired by us here in Madrid; and at the four-party summit in Versailles with Germany, France and Italy. Another four-party summit will be held in Versailles with Germany, France and Italy on 28 August.

We have also held bilateral high-level meetings with the Governments of France, Portugal and Poland, and we actively participated at the G-20 debates held recently in Hamburg, at which we paid close attention to the phenomena of terrorism and immigration; climate change and trade, which is fundamental with a view to continuing with the economic recovery.

I would also like to briefly mention the attention we have paid to our sister nations in Latin America, not only in light of the visit I made back in April to Brazil and Uruguay, but also in relation to having received the Presidents of Ecuador, Argentina, Peru and Costa Rica in Spain. Spain, as you know, is heading up the efforts in Europe to close a Free Trade Treaty with MERCOSUR as soon as possible.

I don't want to end this part of my speech on the matter of Latin America without making a few brief comments about what is taking place in Venezuela.

The government declares its profound concern over the situation in Venezuela which has reached a critical point: three months of protests, more than 100 deaths, hundreds of people injured, thousands of people arrested, violent repression, the violation of human rights and detainees brought before a court martial.

This Sunday the government has called elections for a Constituent Assembly that is rejected by most of the population. These elections have been called without receiving a broad consensus beforehand and without respecting key democratic criteria. The Government of Spain, in the same way as all of the Member States of the European Union, the countries in the region and many international and regional organisations, calls for the Government of Venezuela to reconsider the situation.

Spain has been, and always will been, at the forefront of the defence of democracy and human rights in Venezuela. We have shown this through our support for urgent, sincere and effective dialogue that leads to a broad agreement that respects legality; we have also shown this by heading up a firm response from the European Union to the progressive deterioration of the situation in Venezuela, where 600,000 European citizens live, among them close to 200,000 Spaniards, a response that was set out in the Conclusions approved on 15 May and in a Declaration from the European Union last Wednesday.

We will closely follow, together with our European partners, the development of the situation, without ruling out the adoption of additional measures if these can prove to be effective.

Spain advocates a democratic, peaceful and negotiated solution to the crisis in Venezuela, which necessarily requires an end to violence, respect for the right to peaceful demonstration and respect for the separation of powers, the legitimacy of the democratically elected National Assembly, the independence of the Public Prosecutor's Office, the full release of the more than 400 political prisoners in Venezuela, the adoption of urgent humanitarian measures to ensure that aid reaches the most needy sectors of the population and the holding of free, democratic and transparent elections, respecting the principle of "one person, one vote" and universal suffrage to return power to the people of Venezuela.

Lastly, and at an international level, I would like to highlight the visit to Spain - something that hadn't happened for a long time - of the Prime Minister of India, Mr Modi, and our country's participation in the Belt and Road Summit, promoted by the Government of China.

In short, and also at an international level, we have recovered some of the time lost during a year of political stalemate in 2016 and I must stress that at all the international forums at which I have been able to take part, I have observed the interest and acknowledgement of the task undertaken by our country, and the example of how Spanish society has found a way to overcome adversity.

I will end now.

Just a week ago, we saw the latest figures on Spain's international reputation among a group of 55 countries: we were placed at number 13 in the ranking, which is our highest position on record. That is undoubtedly related to the way in which we overcame the economic crisis and its effects, but also to the values that form part of the image of our country; I am referring to the tolerance of our society, its integration capacity, security and our social protection system.

There are no reasons, there never were and there are not now, for self-complacency, or for chauvinism, because there is always lots of work to do and many things to improve. But we have powerful reasons to enjoy a healthy and gracious satisfaction at forming part of this country, Spain, of its admirable history, its institutions, its hospitality and its ability to overcome adversity.

I am satisfied at what we have achieved between us all, although I will continue working hard to maintain this satisfaction. I am sincerely grateful for all the collaboration I am receiving and I can assure you that we will continue doing battle so that we can also say next year that we have beaten expectations.

Thank you very much. I am ready to take any questions.

Q.- José Miguel Blanco, from Agency EFE. As regards the appeal you have lodged or are about to lodge with the Constitutional Court, have you or any member of your government previously reported this to the PSOE? At any event, do you believe that it will continue backing the measures that the government has to adopt to respond to the steps being taken in Catalonia, taking into account that it has already expressed its objection to increasing controls on the Catalan accounts?

President of the Government.- Yes, we have informed the Socialist Party as well as Ciudadanos of this appeal which, as I say, will soon be lodged, if it hasn't already been, with the Constitutional Court.

I am of the firm conviction that on the vast majority of the important decisions and, above all, on the most important one - defending national sovereignty, and hence, allowing the people of Spain to decide on what they want Spain to be - we will be in full agreement with the Socialist Party.

Q.- Mariano Calleja, from "ABC". I wanted to know, President of the Government, whether in the conversation you held this morning with Mr Puigdemont you had the opportunity to speak about anything else apart from the local train accident, or did you agree to speak or meet up soon to address the situation in Catalonia?

You have reiterated to us today that a referendum will not be held on 1 October. Do you think that the best way out, given the situation, will be to call regional elections early? Does the government view that positively?

President of the Government.- No, I only spoke with Mr Puigdemont about today's train accident on the Rodalies in Barcelona and, as I said to you at the start, I offered the government's sympathies and also announced the presence, which is taking place now, of the Minister for Public Works there, and I said that we were willing to collaborate, and indeed should work together, to ensure that things return to a situation of normality as soon as possible.

In relation to whether it is good or bad to hold regional elections, the power to call elections for the Regional Parliament of Catalonia, as you know, solely and exclusively falls to the President of the Regional Government of Catalonia. Hence, the only thing I can do is make a general statement. I like things to function in a situation of normality, and normally elections and citizens are called to elect Parliament, and then a government, for a period of time of four years. I have never liked elections to be called early, although sometimes this is absolutely necessary; at any event it falls to him to decide.

What is important is respect for legality. I believe that the message we heard yesterday from the business organisation - Fomento del Trabajo Nacional - is a noble and honourable message in defence of the interests of the citizens of Catalonia, in defence of the interests of all the people of Spain, in defence of the law and in defence of democratic co-existence and of the agreement we have enacted between us all. I believe that this message, which I repeat, is noble, honourable and brave, should definitely be respected.

Q.- Cristina Martín, from "La Hispanidad". Mr President of the Government, I wanted to know what you feel about the attempt by Mr Pedro Sánchez to legalise euthanasia in Spain, and I also wanted to know if you believe that it will be possible for this to be approved in the Lower House.

President of the Government.- Just look, since no-one has proposed this yet in the Lower House of Parliament, I believe that this is not one of today's current affairs and so I won't go into the issue.

Q.- José María Brunet, from "La Vanguardia". I wanted to come back to the issue of Catalonia and ask you about the appeal lodged today. Today is a day of contrasts, don't you think? The Minister for Transport is not here, he is there, trying to lend a hand and perhaps that is a good example of institutional collaboration, but, at the same time I say a "day of contrasts" because there is a major appeal being lodged, and I wanted to ask you whether, in short, what you are trying to do - your political goal - is to definitively close off this chapter and for this appeal, if the Constitutional Court annuls the reform of the Regulation of the Regional Parliament, is to prevent the calling of this referendum. Is that your political goal? Do you believe this can be achieved and what would the government's reaction be should this not happen? I say this because the Regional Government of Catalonia has announced that it will not uphold certain rulings handed down by the Constitutional Court.

Secondly, in the balance of things, there have unfortunately been many episodes of corruption in recent months. In this regard, there is a former regional president in prison, another that was forced to resign, an anti-corruption public prosecutor who also… I wanted to ask you for a reflection on this issue, about what the government is doing in this regard and about your disposition to continue appearing in Parliament as some groups are calling for.

President of the Government.- I don't believe this is a day of contrasts. I have stated on many occasions… Moreover, I have had the chance to speak with two Presidents of the Regional Government of Catalonia, with Mr Mas and with Mr Puigdemont, about issues that may interest the citizens of Catalonia as a whole, as I have done over the course of my whole career and as I am doing now.

The government is trying to agree on the Budget with political groups with different approaches and I, over the course of my political career, on many occasions, have reached agreements - me no, my party and I, above all my party - with such groups as Convergència i Unió [Convergence and Union] and with the Basque Nationalist Party. I still maintain this disposition, which I have always had, to enter into dialogue, which has been very useful on many occasions, with one exception - I cannot negotiate for anyone to break the law, to break away from Spain and to deprive the Spanish people of their right to decide; firstly, because I don't believe in this, and secondly and more importantly, because the right to decide on what Spain is to be is not down to me to - it falls to the people of Spain as a whole.

You have just spoken about disobedience, about breaking the law…That is what cannot happen in a democratic and civilised country; that simply cannot happen. No government can ask its citizens to break the law. That is an example of radicalism; it is an exaggeration. That is why more people are increasingly speaking up to demand that the law is upheld. You cannot have, in the 21st Century or at any other time, countries with a government that breaks the law because, aside from that, with what moral authority can you tell a citizen to follow the law? With no authority whatsoever. If your government is breaking the law, and moreover, announcing this, boasting about this, then it is impossible. No public authority can ask a citizen to break the law. That is what I demand.

Aside from that, I have always been open to dialogue and I have said again today that I remain open to dialogue. But I also have some obligations as the President of the Government and one of them is to prevent a referendum being held that is in violation of the Spanish Constitution and that deprives the Spanish people as a whole of their right to decide on their own country. Aside from that, my disposition is as always full and absolute, as indeed I have accredited over the course of many years.

As regards the second issue, am I willing to appear? Since the year 2009, when the public became aware, and we all became aware, of the matter that you are enquiring after, I have stood in three elections and I have taken part in several debates during these three elections on this matter. I have appeared in dozens of interview on this same issue in Parliament; some of them on exclusively on this issue. If another one takes place, it will be one more but, as I said when the debate on the motion of no confidence took place, everything out of proportion ends up being irrelevant. And I would now add that anxiety is always a bad adviser and I believe that in Spain there are enough political problems and enough issues that are important for the people of Spain so as not to be conveying the feeling that there are no new ideas to contribute, or indeed anything else to introduce into Spanish politics except issues that we have now been addressing for almost 10 years.

As regards my disposition to collaborate with the justice system, well that has always been absolute. I am the President of the Government, I know what the law is, I know what the separation of powers is, and hence, as I did the other day, I will do what is asked of me.

Q.- Javier Lazaga, from the PROMECAL Group. Mr President of the Government, as regards the balance you have made of the first half of the year, you have mentioned that this improvement which is beating all expectations can only be maintained if the commitment to stability and structural reforms is maintained. I understand that one of them is the start of the work to reform the system of regional and local financing, but I wanted to know what other structural reforms the government is thinking about introducing.

President of the Government.- There are many structural reforms that are presently being debated in the Lower House of Parliament. We have managed to forge the first State Pact, which I mentioned in my speech, on gender-based violence; I believe that this is very positive. We are talking about pensions, which is undoubtedly one of the main challenges we will be facing in the future. You cannot govern when you are constantly thinking about what is round the next corner.

The pension system is an issue that we must consider looking at in the long-term. There are 9.75 million pensioners in Spain. Spain is the country in the world with the second highest life expectancy; fortunately, people are increasingly living longer and hence we must be prepared to provide a response to this situation.

That is a structural reform that I give great importance to. The same is true of the subject of education. A committee has been set up in the Lower House and I believe that it would be positive for us to reach an understanding.

Then, another of the major reforms is that of regional financing, which is important because it affects what matters to people, other major public services - healthcare and the education system. Yesterday, the experts presented their report, a working group has been set up under the Fiscal and Financial Policy Council in which all the regional governments that want to do so will take part and I hope that they will be able to reach an understanding and an agreement. An issue such as this should be resolved through an agreement between everyone and to do so with a majority is always the worst of the solutions. I hope that on this matter which, at the end of the day, only seeks to benefit people as a whole, everyone will rise to the occasion.

We started to work on this yesterday. During the last term of office, very far-reaching structural reforms were undertaken in Spain: I am not only talking about the labour reform, but also about the Budget Stability Act and I am talking about the reform of our financial system. Well we must continue with this process.

Very important reforms are being undertaken in Europe. One of the main debates that will begin to be discussed - I believe that sooner rather than later - is on where we are heading. And among the things that have to be decided upon in this regard is whether we will have a European defence system - that is truly a structural reform - and whether we will have a European Budget, a European Minister for the Treasury, with Eurobonds… There are many issues on the table at this time and what I am increasingly more convinced of is that, if you are at a standstill, which should only happen when you don't know where you are heading, you end up being left behind. That is why I have always opted for reform.

Q.- Estefanía Molina, from "El Nacional". President of the Government, I would like to know if the government is aware of who may be ordering the interrogations made by the Guardia Civil in the last few hours of the Regional Government of Catalonia, taking into account that the Investigating Court is unaware of this order.

Secondly, if the government says that it will indeed prevent a referendum being held, what is the plan on how is it going to redirect the unease of those citizens who are expecting this as from 2 October, taking into account that, according to the surveys conducted, many of them seem set on a point of no return?

President of the Government.- In relation to your first question, you will appreciate that the government is absolutely respectful of the functioning of the courts, the public prosecution service and the State law enforcement agencies. Hence, I am absolutely unaware of how this is happening.

As regards the second question you asked, what is important is that an illegal referendum is not held, as I said before, and the disposition to enter into dialogue will be held and the government's position will be the same, because we cannot accept, under any circumstance, that our national sovereignty is done away with.

Q.- Ángel Collado, from "El Confidencial". We know that you have spoken with Mr Sánchez, or, at least, with the Socialist Party, and with Mr Rivera, about this appeal which, let's say, closes off the legal-political circle on the referendum. Have you spoken with them about what steps the government will have to take or what Parliament will have to do in the event that the President of the Regional Government of Catalonia does in fact disobey the ruling?

President of the Government.- We have indeed spoken. I have not directly spoken about today's appeal with Mr Sánchez or with Mr Rivera. I have had some general chats with them some time ago; and their parties are perfectly well informed through the Vice-President of the Government and the representatives they have appointed.

As regards what will happen after 1 October we have made some initial headway, but no decision has yet been adopted. But let's not forget one thing: the most important thing that must happen in relation to 1 October is to recover normality; that is what is most important. After 1 October, we cannot start another period of time of four or five years discussing whether or not we will hold a referendum, or whether we will break the law, of whether we will go before the Constitutional Court…

At this time, what is needed is to recover normality and, in order to recover normality, the Regional Government of Catalonia must understand that it cannot announce to the whole world that it wants to break the law, to totally disregard the Statute of Autonomy, to totally disregard the Constitution, because that doesn't lead anywhere, except to generate frustration, tension and division. In other words, we need a touch of restraint, moderation and common sense. That is what we need to see after 1 October.

Q.- Ana I. Gracia, from "El Español". President of the Government, I had two questions for you. Are you aware of whether the Regional Government of Catalonia has purchased the ballot boxes for 1 October?

And then, I also wanted to ask you about an issue that has revolutionised society this week. The President of the Regional Government of Catalonia has offered legal aid to Juana Rivas, a woman whose whereabouts is unknown and who is with her children in order not to hand them over to their father, who has been charged with abuse. Do you believe that this mother should comply with the regime of visits and hand over her children to their father or do you believe that, in this case, it is justified to break the law to protect the physical integrity of the children?

President of the Government.- As regards your first question, I don't know the answer. I don't know whether or not the Regional Government of Catalonia has bought the ballot boxes.

As regards your second question, just look, you have to put yourself in the shoes of this woman and be aware of what has happened: a marriage, she then had to go and live in Italy, she then had to come back, she has been assaulted twice, her husband has been convicted by the courts… We should care for people and understand them; everything else is secondary.

Q.- Gabriel Sanz, from "Voz Populi". President of the Government, a year ago you were on a knife-edge, we were in a legislature that then ended up failing, there was a political stalemate, your own presence in your post was under fire and there were people, even in your own party, who asked you to stand to one side. One year on, you have described a panorama for us in which you have received support for the budget and you are looking forward to remaining in office until the end of your mandate. My question is simple, will you stand as the People's Party candidate in the next elections? Do you still have the desire to do that?

President of the Government.- I feel great, in all honesty. It is true that neither my government nor I have had it easy over the whole of this time but, in a situation of extreme difficulty, we are doing things, although undoubtedly they could be done better, that I believe are good for the people of Spain as a whole. But the most important thing is not what we have done, the most important thing is what we believe we are in a position to do.

I believe that Spain could now enjoy a long period of economic growth; I believe that Spain can create many jobs; I believe that Spain could play a leading role in Europe and I believe that Spain can modernise in the new technology sector and have a good energy system, and that we can be more competitive. Hence, this government has ideas and I have passion and interest, and the only thing I propose now is to continue working to the benefit of the general interest of the people of Spain. Quite honestly, I haven't thought about anything else.

Q.- Fernando Jáuregui, from OTR and from "Confidencial" of "La Linterna" of COPE. Mr President of the Government, I wanted to ask you about your expectations for the month of August, aside, of course, from "Ruta da pedra e da auga". I wanted to ask you - you have been asked about this already, the issue has already come up - about regional elections potentially being called on 8 August by Regional President Puigdemont. I know that you two haven't spoken about this but I would ask you whether you believe that this step will be taken and if this step will be taken so that various elections coincide. In that case, what is the government's Plan B, or even its Plan A. Do you believe that the government will be supported by the Socialist Party, and even by Podemos, should the need arise, in this Plan B and this Plan A?

And also, naturally enough, since we are in the month of August, this other working hypothesis that we, the journalists, have consider for the month of August is if there is a plenary session, what will Podemos and the Socialist Party ask for. I don't know whether you have spoken with someone form the Basque Nationalist Party which would be the party, if this arises, that could prevent this plenary session with its votes, and how worried you are about this potential plenary session being held.

President of the Government.- I haven't spoken about this plenary session with anyone, but I believe that I have more than answered this question already earlier. I believe that what is out of proportion, and I will say this again, ends up being irrelevant. Then, a word of advice: anxiety doesn't lead anywhere in any walk of life, not just in politics.

As regards the intentions of Mr Puigdemont, and whether he will call this or not, I don't know anything. As I said before, this is a decision for him and I will have to respect it. I respect all the decisions taken by Mr Puigdemont, but I have to ensure that the law is upheld. Hence, it is not a question of Plan A or of Plan B. If he wants to hold regional elections, he can do so; if he wants to break the law, he cannot do so. I believe that any other consideration makes little sense.

Ladies and gentlemen, thank you very much and those of you that can, enjoy your summer holidays.

(Transcript edited by the State Secretariat of Communication)

Non official translation