Press conference by the President of the Government of Spain after the Council of Ministers

Moncloa Palace, Madrid

SPEECH BY THE PRESIDENT OF THE GOVERNMENT OF SPAIN, PEDRO SÁNCHEZ

Good morning and thank you to the media for attending this speech after the Council of Ministers.

Before we begin, as we did yesterday through the social networks and various media, I would like to say a few words of remembrance for Pope Francis and also a few words of affection. Over the years I had the opportunity to talk to him on several occasions, and I always knew that I was in the presence of a friend of Spain and a moral and spiritual reference point for millions of people. A leader who championed the fight against poverty, a humanistic approach to migration, climate change mitigation and adaptation, and against intolerance, when it was most needed. I am convinced that the world will miss his courage, his message, and we in Spain will honour him.

Having said this, I would like to begin this speech by reminding the media, and also the Spaniards who are following this appearance, that a few weeks ago in the Lower House of Parliament I announced that the Government was preparing an Industrial and Technological Plan for the Security and Defence of Spain and Europe, and I undertook to reveal its details as soon as they had been finalised.

Well, today I am appearing before the media and also before the Spanish public to inform you that, after weeks of intense work, the Industrial and Technological Plan for Security and Defence has today passed through the Council of Ministers. It will be sent to Brussels tomorrow so that its technical and budgetary rationale can be assessed by the European Union and NATO. And we will also make the specific and complete report public on the Moncloa Palace website so that it can also be analysed by citizens who wish to see it in detail.

Before I begin my explanation, I would like to thank all the government departments involved in its drafting, especially the Minister of Defence, Margarita Robles, who is with me at this press conference, and also the Defence Staff for their brilliant and intense work during these weeks.

I would now like to set out the objectives in this Industrial and Technological Plan for Security and Defence.

The first of these objectives is to guarantee the security of our country, and therefore of our citizens, of our territory, in a geopolitical and technological context that is in full swing, as you know and as the citizens are well aware.

Europe's enemies, and there are some, not only use missiles and tanks to attack us, as has unfortunately been happening for the last three years in Ukraine, they also use unmanned drones, paramilitary forces to sabotage supply chains, cut gas pipelines, undersea cables, use social networks to misinform the population, to polarise it, to generate disaffection towards democratic institutions, and use cyberattacks articulated with artificial intelligence and also quantum computers to compromise our telecommunications, our supply networks, our public services and therefore our way of life.

The Government of Spain obviously cannot ignore these threats. It is therefore a question of strengthening European security. We must develop the human and technical capacities necessary to defend ourselves against them. And that is our obligation. And this Plan that we have approved today will help us to deliver it in record time.

Along with this first objective, the second is to consolidate Spain as a central and reliable member of the European Union and the Atlantic Alliance.

In a world dominated by uncertainty, Europe is hope and certainty. A certainty that we must protect by strengthening our security and defence system, because, in light of what we have seen, it is clear that only Europe will know how to protect Europe, and Spain will contribute to protecting Europe.

Putin's neo-imperialism is not - as I have said on many occasions - only about denying Ukraine's right to exist as a nation, it is also a real threat to European security.

All Member States, whether we are further away or closer to the front line, are part of the same community, and therefore the security and stability of Ukraine in Eastern Europe, the Baltic countries and the Nordic countries are also the security and stability of Spain. The people of these countries know that Putin means business, and that is not only in words but also in deeds. That is why they look to Europe for protection and for something important, which is unity, and Spain is obviously not going to be indifferent to this demand.

Ukraine resists. Europe responds. And Spain delivers.

There is a consensus, I would say a cross-cutting consensus, in the European Union as a whole, which transcends political families, including the regional priorities that we may have in different areas within the European Union. We are facing a change of era, and this change of era obliges us to take control of our own destiny and to build the security and defence union that the founders of today's European Union proposed back in the 20th century.

Spain, as the economic power that it is and as the pro-European society that it is, will not be left out of this process; on the contrary, we will be at the centre, with the same relevance as other large economies and other large Member States of the European Union. And for this, it is essential that we meet the investment targets demanded by our partners and which Spain already acquired in 2014 under a conservative government. It will therefore be this government that delivers what others have failed to deliver.

That is why I am announcing that with the Plan we are presenting today, Spain will spend 2% of its Gross Domestic Product on security and defence in 2025. I repeat, Spain will spend 2% of Gross Domestic Product on security and defence this year, in 2025.

To do this, we are going to have to make a significant investment, a significant effort of 10.471 billion euros in addition to that already earmarked for these security and defence policies.

This will allow us to jump from 1.4% of Gross Domestic Product in security and defence investment in 2024 to 2% in 2025. 1.4 in 2024, 2% in 2025.

Let us remember that in 2018, when I had the honour of being elected President of the Government of Spain by Parliament, the defence budget was 0.9%, 1.4% in 2024, 2% in 2025.

It is, as I said, an important effort, but it is also proportional to the commitment we made in 2014 by a conservative administration and also proportional to the challenges that Spain and Europe are facing in this changing geopolitical and technological context.

And furthermore, as I announced at the time, and as I also announced in Parliament, this is going to be done without raising taxes, without touching one cent of investment in the Welfare State and without incurring a greater public deficit.

I will give you details of this later, but I would like to move on to the objectives of this plan, because the third is to promote a new wave of innovation and reindustrialisation of companies, and therefore of employment, throughout Spain around dual-purpose technologies.

What will all this allow us to do? It will allow us to consolidate the excellent shape of the Spanish economy and also to accelerate the modernisation of our productive fabric, which we have begun to implement thanks to European funds.

In these seven years, the Government of Spain has had to face successive and major crises and you have narrated them in this press room. We are a government, therefore, with proven experience in managing difficult junctures, be it a pandemic, an energy crisis, an inflationary spiral or a tariff war such as the one we are currently experiencing.

And we have responded to all these crises in the same way: efficiently and fairly. There are the numbers on economic growth and job creation and also on territorial cohesion and social cohesion.

We are, therefore, determined to do what? We are determined to do the same with this security crisis: Take advantage of it to reindustrialise all our territories, to create value chains in our territory, to continue creating jobs, leading companies and to achieve greater integration of our small and medium-sized companies, the social economy and start-ups with European supply chains. For Europe and Spain to gain in what we have been advocating for Spain for a long time, which is strategic autonomy.

In short, the objectives of the plan are to strengthen our security and defence, to reindustrialise and give a new technological boost to our economy, to fulfil our commitments as the reliable partner that we are, and also to consolidate Spain as a central player in the European Union.

In order to achieve these objectives, the Plan we are presenting today is based on five main pillars.

The first of these will account for 35% of the total investment, and it will be used for what? It will be used to improve the working conditions of the troops and sailors, to improve their training conditions and also to improve the equipment of the Armed Forces.

We have just, as you know, increased the salaries of the troops and sailors. This is a demand that has been made by the armed forces for many years. This Government has delivered on that commitment. And also what we are going to do, along with this increase in salaries, is to increase the number of troops in the Armed Forces. We are going to update their equipment, as I said before, we are going to modernise their training systems, which is fundamental, together with the modernisation of their equipment.

In short, it is not only a question of bringing the conditions of Spanish soldiers into line with those of European soldiers, but also of responding to a historic demand of our soldiers, and also of their families, which we are finally beginning to meet today, because we want to further improve the security of our Armed Forces with more training and better equipment. And also, with the just recognition that many citizens, when there is, for example, a UN flag and also a Spanish blue helmet, or even in Spanish territory in the event of a climate emergency, recognise our Armed Forces.

This represents 35% of the bulk of the Plan that we have approved today in the Council of Ministers.

The second pillar will account for around 31% of the investment. And what will it address? It will address developing, manufacturing and acquiring new telecommunications and cybersecurity capabilities. Every year, as I have said on other occasions, but it is good for Spaniards to know, because it does not appear in the media, it is not reported in the media, but Spain is the target of more than a thousand cyber attacks on essential services and critical infrastructures every year. Attacks, as I have said, which do not appear in the media, but which exist, which are real, which affect the operation of our hospitals, for example, of our airports, of our electricity network, and also of our companies. So far our systems have managed to repel the most serious ones and contain the impacts of the rest, but the threat, far from disappearing, is clearly growing every day.

That is why we are going to invest 3.26 billion euros in modernising the encrypted telecommunications systems of our Armed Forces, in acquiring new satellites, antennas, radars, and also in reinforcing our cybersecurity instruments, both for military and civilian use. We will also invest in cloud capabilities, 5G, artificial intelligence and quantum computing. The aim, in short, is to create a digital shield for Spain, so that our digital security, our rights in the digital world are protected against foreign hackers.

The third pillar of this plan concentrates around 19% and is to be spent on the manufacture and purchase of new defence and deterrence equipment. Our aim is to modernise to make them more effective, more efficient and safer. Therefore, we are not doing this to attack anyone; Spain is a pacifist country that believes in diplomacy, that believes in international relations, that believes in multilateralism, and we will do it to dissuade those who may be thinking of attacking us or attacking Europe. We will do this so that, for example, when a Spanish soldier on a peace mission gets into an armoured vehicle in Lebanon or a frigate in the Strait of Gibraltar, they will feel even safer and know that they have state-of-the-art technology, the most advanced technology in the world to do their job and therefore fulfil their mission.

The fourth pillar will be aimed at strengthening the dual capabilities of our Armed Forces so that they can also help in the management of emergencies and natural disasters such as floods or fires in a peninsula, the Iberian Peninsula, which, as you know, is dramatically affected by the effects of the climatic emergency.

This item will account for around 17% of the total investment, around 1.75 billion euros. And what are we going to do with those resources? We are going to expand, for example, our fleet of rescue helicopters, also for logistical support. We are going to acquire new vehicles, bridge launchers, air tankers for fire fighting, for example, or charter a new hydrographic vessel. And we are also going to invest in adapting and modernising the Ministry of Defence's infrastructures so that it can respond swiftly to emergency situations that affect national security.

In short, as I said before, all citizens have recently been able to witness the extraordinary role played by the Armed Forces and, in particular, by the Military Emergency Unit (UME) in the areas affected by the DANA. Most of us also know that the climate emergency is a reality that, far from diminishing, is unfortunately worsening year after year. That is why it is important that the capabilities of our armed forces are also increased to help them cope.

The fifth and final pillar of the plan will be aimed at improving the security conditions of the almost 3,000 troops that make up the 16 peacekeeping missions that Spain is currently carrying out abroad under the flag of the United Nations, the European Union and the Atlantic Alliance. We are talking about 3,000 military personnel, including civil guards who are risking their lives to ensure the stability of Lebanon, to protect ships crossing the Indian Ocean, to combat terrorism in Somalia. In short, 3,000 professionals who give the best of themselves, who deserve the best conditions and equipment we can give them.

Therefore, these are the five items into which the 10.471 billion euros of the plan that we are going to send to Brussels tomorrow are going to be distributed. Some 10.471 billion euros, which will be added to what we have invested over the previous years to reach a total figure of 33.123 billion euros in security and defence, i.e., 2% of Spain's Gross Domestic Product (GDP).

As I said before, our objective is to modernise security and defence capabilities in Spain and in Europe with a 360-degree comprehensive perspective, focusing mainly on three things: First, improving the conditions of our armed forces. Second, the modernisation of our equipment. And third, the development of new technologies with a priority focus on dual-use applications and devices that can serve both military and civilian purposes.

So much so that, to give you an idea, 84% of the 31 new special modernisation programmes to which around 3.8 billion euros will be devoted will generate dual-use, dual-purpose technological developments for both military and civilian use.

We obviously did not choose the world in which we live, but obviously one thing I would like to tell you is that less than one fifth of the Plan is going to be allocated to the purchase of armaments in the more traditional sense of the term, fundamentally to the modernisation of land and maritime combat systems, and this will be done because it is necessary, because although we may not like it, there are state and non-state enemies who can only be deterred in this way.

That is why I said earlier that we did not choose the world we live in, we did not choose Putin's belligerence, the proliferation of jihadist groups in the Sahel, the presence of mafias or drug traffickers in the Atlantic or the reconfiguration of the Atlantic link that we have been witnessing in recent weeks. We did not choose this international situation marked by instability and uncertainty, nor did we choose the pandemic, nor did we choose the inflationary spiral, the trade war or any of the other crises we have experienced in recent years.

We do not choose the crises, but we do choose how we face and respond to those crises. We choose to do so, if I may say so, with strategic intelligence, with social justice, with loyalty, with the loyalty of a reliable and committed partner in Europe and with the determination that Spain will come out of it better than it went in. We have done so in every crisis we have faced and we will obviously do so again now.

The additional investment we are going to make in security and defence will be in line with the current world situation and the threats faced by the project to which we are also actively contributing, the European Union. But it will also live up to Spain's interests, to the values of the progressive government.

These values will be embodied in four commitments that I would like to make to the public today.

The first of these is that we are going to finance this Plan, as I have said from the very first minute, without touching a cent of the welfare state, or affecting the pockets of our citizens. The bulk of the funding foreseen for 2025 will come from three sources.

The first is the reorientation of some items of the Recovery, Transformation and Resilience Plan of the NextGenerationEUfunds, such as the one earmarked for cybersecurity, with more than 1.3 billion euros, as I said at the beginning of my speech.

Secondly, from the savings generated by the rigorous management of this Government and also the successful performance of this Government's economic policy. There are the economic growth figures, which in 2024 exceeded the forecasts of all international and national organisations, as well as those of the Spanish Executive.

Thirdly, the margin given to us by certain items that were included in the General Budget for 2023, but which are clearly no longer needed.

With all these mechanisms and carryovers, the Government will be able to finance the 2025 fiscal year without compromising social or environmental spending, without undertaking tax increases and without incurring higher deficits or public debt.

Furthermore, while waiting for the Commission to specify and implement other additional financing mechanisms which, as you know, member states such as Spain have requested, we are going to go down this route because we believe that defence is a common and European good, which should be financed not only with national resources, but also with EU resources.

In short, we are going to improve - and this is the commitment I am making to the Spanish citizens - our security while continuing to improve our social welfare, as we have done, by the way, since I have been president of the Government of Spain. I remind you that since 2017, the Executive has increased investment in security and defence by around 12 billion euros, while we have increased social policies, public services by 120 billion euros and support for the ecological transition by more than 30 billion euros.

A healthy and dynamic economy such as ours can therefore invest in welfare and security at the same time. We have done it in the past; we will continue to do it now. This is my first commitment.

The second commitment is that most of the money we are going to mobilise will stay in Spain. We estimate that 87% of the plan's investment, around 9 billion euros, will go to Spanish companies and workers in a wide range of sectors and in all the country's autonomous communities.

We will direct funds to the industrial, security and defence corridors that already exist in the north, south, east and west of Spain. We are going to extend these corridors to new territories so that the companies located there can increase their activity, expand their workforces and modernise their production systems.

We are also going to invest in other sectors such as digital technologies, telecommunications or those that could be more affected by the tariffs inflicted by the US administration.

We are going to demand that the driver companies in both sectors involve SMEs, the social economy and start-ups, so that they can take advantage of the opportunity to integrate into advanced supply chains, obtain financing and grow and internationalise.

And, to facilitate this whole process, we are going to carry out other actions that are not included in the Plan's budget, but which will be important for the governance of this Plan. First, a National Committee for Security and Technological Sovereignty will be set up to ensure the proper implementation of this plan. Secondly, we are going to expand the technology transfer offices. And finally, we are going to strengthen our training ecosystem with the development of new industrial doctorate programmes, university-business chairs and the establishment - and here is the Minister, spokesperson and Minister for Education and Vocational Training - of vocational training hubs, as we have also done with European funds in other areas and which has been, by the way, an outstanding success.

Ultimately, I would like to say to the citizens that the objective is to turn this security crisis into a new economic stimulus for Spain, for re-industrialisation for Spain, for training for Spanish citizens and for the development of dual-use technologies, which serve the security and defence sphere, but which can also be used for applications and opportunities in civilian sectors as a whole.

The Government of Spain's estimate of this Plan is that it will contribute to increasing our country's Gross Domestic Product by between 0.4 and 0.7 percentage points, that it will allow R&D to increase by almost 18% and that it will create around 100,000 jobs, some 36,000 direct and 60,000 indirect. Most of them are obviously highly qualified and have higher salaries than the average in our country.

The main goal of the Government of Spain has always been, and will always be, to ensure that Spaniards live better lives. To create wealth, distribute and redistribute this wealth not only at the social level, but also at the territorial level. At the moment, I think we are succeeding like few others. We are growing well above the European average, we are breaking employment records, we are reducing poverty and inequality, which continues to be the great Achilles' heel of Spanish society. And now we will also take advantage of this industrial stimulus to continue to do so.

I said that more than 80% of the plan's investment will go to Spain. The bulk of the remaining investment will go to European companies, because the objective of all Member States is to strengthen the technological base and also the European industrial base. And we will do so because there are technological capabilities in our neighbouring countries, in our European countries, and therefore we do not need to look further afield.

As I said before, we want to contribute to the creation of an EU security and defence industry, which will allow us economies of scale, which will facilitate common purchases, which will improve the interoperability of the European Armed Forces and also the full strategic autonomy of the European Union, which Spain has always defended.

Under this objective, under 5% of the Plan's investment will be spent on purchasing spare parts or essential components that are not currently produced in Europe. Under 5%.

However, I would also like to inform the public and also the media that this Plan is designed to help our companies to develop their own productive capacities in the medium term and that Europe will therefore continue to strengthen the idea of strategic autonomy.

The third commitment is that we will work in a transparent and participatory manner over the last few weeks. In addition to the round of meetings I held with the parliamentary groups and the appearance I had in the Lower House of Parliament, we have had many meetings with national and international experts and with companies representing the technology, security, cybersecurity and defence sectors in our country.

And from her onwards, we will continue to do the same. We will publish, as I said before, the technical and budgetary details of the plan. What we are also going to do is to increase our dialogue with the social agents, with the productive fabric, with the regional and local administrations that are going to benefit from this Plan on behalf of the Government of Spain and, logically, with civil society.

In fact, I am announcing that today I will ask to appear again in the Lower House of Parliament to present the Plan to the parliamentary groups. I am aware, and the Government is aware, that there are differences on this issue within the parliamentary spectrum. There are. But I honestly believe, I firmly believe that this is a national issue in which we must all make our contributions, pull together, put aside our differences, because what is at stake is something as serious as the security of Europe and, therefore, the security of Spain.

Because our European partners are counting on us, just as we are counting on them when we put forward this exercise of solidarity in response to the pandemic.

And because common sense, which is reflected, by the way, in different opinion polls, shows that a large majority of Spaniards are concerned about the international context and want solutions, not sterile or self-interested controversies.

There is a fourth and final commitment that I would like to convey to you, and that is that the world is obviously changing, but European principles and values are not. This Government will not stop believing in diplomacy and in supporting the multilateral system, which today is being undermined and weakened by one of the main actors. We have to defend ourselves against those who want to do away with our sovereignty, our democracy and our way of life. But we must also work to change the minds of those who want to do so. This is done by talking to them, with firm convictions, but also with open eyes and an outstretched hand. It is done by negotiating at the UN head office. This is done by promoting education, employment and health in all regions of the world, particularly those most affected, through third sector NGOs, development aid, free trade and cooperation between states.

That is why I say to you that, just as we are not going to touch a cent of social spending to finance the strengthening of our security, we are not going to touch a cent of investment in diplomacy and development cooperation.

And I would like to announce, by the way, that at the same time that the Government is implementing the Industrial and Technological Plan for Security and Defence, we are already working on another Plan to strengthen the multilateral system, which is currently being weakened, with contributions from Spain.

You know that there is an important conference in the city of Seville at the end of June, beginning of July. The Financing for Development Conference is an important milestone in the multilateral system of major UN summits, where most UN member countries will meet. It will not be the only milestone, but it will be a very important one.

And today, more than ever, it is necessary that countries like ours, which show solidarity, which are pacifists, break a lance in favour of our system of rules of cooperation in shared interests, which has given the world so much peace and prosperity over the last 80 years. I believe that the time has come for an honest and also effective conversation about the functioning and mission of multilateral organisations. The time has come to improve their representativeness, transparency and effectiveness in the so-called Global South, and to update their decision-making and funding mechanisms.

If we want institutions such as the United Nations, the World Bank, the International Monetary Fund and the World Trade Organization, which is now being called into question as a result of this trade war, to be effective and to continue to arbitrate and facilitate relations between countries, we will have to equip them and adapt them to the reality of the 21st century, which has nothing to do with the reality of the 20th century.

Spain wants to be and will be at the forefront of this process. We are going to do so because we know the past and we have hope for the future, because, although we know that force still continues to condition the world, it is possible to build a future in which this is no longer the case. This is the commitment, ambition and purpose of the Government of Spain.

I will conclude, and I would also like to thank the media and the citizens for allowing me to make this first speech. I conclude with a personal reflection and that is, quite frankly, if I had been asked years ago about my Government's investment priorities in security and defence, it is clear that my answer would have been different from the one I have just given you. But that is not because our values and our goals have changed, it is because the world has.

In 2018, Russia was still moderating its aggression towards Europe, the Sahel had some strong democracies and the presence of Western troops. The hybrid threats were latent, not so obvious, and the transatlantic link remained unchanged and also unchallenged.

But that world of yesterday no longer exists. Today the reality is very different. And we, as a Government, must respond to it out of commitment to our European partners, who came to our aid when we needed them. Out of responsibility to our citizens, who expect us to protect them and to guarantee their way of life, their social and democratic model. And out of loyalty to our principles.

Because Spain cannot be a prosperous, just or free society if it is not capable of defending its digital space and its physical territory. Europe must learn to do what until recently was not necessary or done for it by others since after the Second World War.

Spain must contribute to this effort as what it is and intends to be: one of Europe's major economic, scientific and secretariat powers.

Spain will therefore rise to this historic moment. Let's get our shoulders to the wheel. Let's do so without renouncing our values and our interests. That is why we are going to focus the efforts of this Industrial and Technological Plan for the Security and Defence of Spain and Europe on improving the conditions of our Armed Forces, on acquiring and developing the equipment and technologies that our industry knows how to produce, and on helping small and medium-sized companies in the territories beyond the capital to attract new companies, create quality jobs and also create local development. In short, we also want to strengthen the capabilities of our Armed Forces, including the UME, to manage climate emergencies.

In short, we will use the security challenge to keep moving forwards on our own path, not in the direction dictated by our enemies, but in the direction we as a society want for ourselves, for our loved ones and for our sons and daughters.

A Spain, therefore, with more industry, with more employment, with more social justice, with more territorial cohesion, with more technological innovation and with more security, if you will allow me, in a broad sense, in the broad sense of the word. That is our objective.

Now, I will be available to the media to answer your questions.

QUESTIONS FROM THE MEDIA

Daniel Basteiro (Bloomberg): Thank you, Mr President, I wanted to know how this plan fits in with the European strategy, whether there has been any prior coordination on where to invest or what capacities to strengthen. I understand that none of this plan will be financed by the 800 billion euros in the Commission's plan announced by President Von der Leyen. Secondly, you talk about the 2% commitment made in 2014, but there is a new NATO Summit in The Hague and there is talk of going well beyond that commitment. What is the timetable after 2025, how much will Spain invest in security and defence in 2026? And if I may, are you going to put the plan as a whole or parts of it to the vote in the Lower House?

Response: Well, thank you very much Daniel, for your questions about the contribution. The contribution is in principle borne by the national budget. Obviously, as you and the media, particularly not the citizens, know, we have been working for many years, making a diagnosis both in Europe and in the Atlantic Alliance of the risks and threats that Europe in particular is facing. Therein lies the strategic compass, as well as the Madrid security concept approved in NATO, that 360-degree perspective. Therefore, based on this framework, Spain has evidently worked to strengthen its needs and capabilities, both in security and defence, in order to face these challenges. On the SAFE instrument, well, we still have to see how concrete it will be. We are waiting to see the results of the European Commission's work and from there we will obviously decide whether or not we are going to join this SAFE programme. In any case, this additional 10 billion euros is set against national budgets and, therefore, we are waiting to see exactly how the European Commission's SAFE programme will be implemented and, on that basis, we will decide whether to join the European programmes or not. If you ask me if the ambition, if the will of the Government of Spain is to participate, I say yes, because, as I said before, what we also want is to contribute to increasing Europe's industrial and technological capacity. But we cannot wait either, and therefore we have taken this step the day before, because tomorrow is when we have to send the budget planning to Brussels, both to NATO and to the European Commission. All the budget items that have been incorporated into this Industrial and Technological Plan for Security and Defence count, or let's put it another way, fall within the NATO metrics that are counted as defence spending. And secondly, on the 2014 commitment, the 2025 summit... I think we are going to wait. There are indeed different comments being made, whether 5% and 3.5%. I believe that the approach to be taken by the Member States, particularly in Europe, is to strengthen the European security and defence pillar. This is the best way to contribute to the strengthening of the transatlantic relationship. Secondly, we are going to talk and we are going to think about how not only to invest more, but to invest together and better, because that is where the debate that is being avoided lies. Where is the capacity for Europe and the Atlantic Alliance to invest together and invest better to create the economies of scale and the industrial and technological base that Europe needs. And finally, on the Lower House of Parliament, I have said this on several occasions, but today I would like to specify it again. The Government of Spain, as in any consolidated democracy such as ours, obeys and functions and exercises its powers on the basis of the Spanish Constitution. There are two articles of the Spanish Constitution. Specifically, Article 97 and Article 134, which clearly establish which decisions are the responsibility of the executive and legislative spheres of our country. There is also a fourth chapter of the General Budget Law that clearly establishes what the Government can and cannot do when reallocating and executing expenditure items. And this plan, therefore, does not require the approval of Parliament. Of course, to appear before Parliament, as I have done previously, but it does not require the approval of Parliament. Why? Because it does not imply a greater budgetary effort and, therefore, via tax revenues, neither for the citizens nor for the companies of our country. The sources of funding derive from the good performance of the Spanish economy and also from the refocusing of budget items in the national budget and European funds. Therefore, the Government is doing its job.

Miguel González (El País): Thank you very much, Mr President. Miguel González, from El País. I would like to ask. Firstly, are we talking about the 10.471 billion euros you referred to in transfers to the Defence budget or does it also include credit lines from the Ministry of Industry or others? In other words, are we always talking about expenditure, or are we also talking about credit? Then, well, I think you said in your reply to my colleague that you understand that all these programmes included in this plan fit in with NATO's current definition of defence spending. However, we have heard that Spain wants to make this definition more flexible. And then, well, you are always talking about reaching 2% in 2025, I don't know if there is really the capacity to implement this plan in the rest of the year or if we would probably be moving on to future years. Thank you.

Response: Well, obviously, with regard to the first of the questions, there are credit lines that are substantiated and which will therefore be expenditure when they are executed. And the question has an easy answer: the Government of Spain, of course, is confident that it will implement this entire budget item included in the Industrial and Technological Plan for Security and Defence.

José Enrique Monrosi (elDiario.es): Good morning, Mr President. Thank you very much. You have told us where this almost 10.5 billion euros is essentially going to come from. You said that some of it will come from the redirection of specific European funds. You gave as an example some items that would be earmarked for cybersecurity. I wanted to ask you if you could give us some more examples of where this money is going to come from because, although you have insisted today and you have already stated that there will be no cuts or diversions in social investment, the money available to the Government is finite and I suppose that until this global situation that you describe has occurred and which requires a change of direction in your Government's plans, this money would be destined for other things or planned to be spent on other things. What is the Government going to stop spending money on in order to make up to 10.5 billion euros available for defence spending? You have already said that, in principle, this plan does not need to be approved by Parliament from a legal standpoint. I wanted to ask you if, from a political standpoint, you think it would be good, or at least advisable, to have the support of Parliament or even your government partners in order to move forwards with such a key investment and policy change during this term of office. And finally, I wanted to ask you whether your coalition partner Sumar had any objections to this expenditure during the Council of Ministers meeting. Thank you very much.

Response: Can you put up the slide to answer the questions the journalist asked me? Well, here you see the bulk of the items in terms of expenditure, 35%, above all in working conditions, preparation and equipment for the Armed Forces; new telecommunications technologies and cybersecurity, where I mentioned earlier that, in effect, some of the items linked to cybersecurity of European funds would be oriented; support for emergencies and natural disasters, therefore, support for the operational capabilities of the UME, overseas missions. Well, where do we get these financial resources from? And give a few more examples. I said earlier, Monrosi, if I may, that the orientation of some of the items in the Recovery, Transformation and Resilience Plan. Specifically, 1.3 billion euros, which was already foreseen and approved by the European Commission. Secondly, savings generated by this Government's rigorous economic management and successful economic policy, which are leading us to have such outstanding economic data as Spain is experiencing in a much more complex European context and also from the international point of view. Remember that Spain last year was the best economy in the world in terms of economic performance. What has this meant? It has meant, for example, that savings have been generated that in 2024 represented around 3 billion euros, for example, in the reduction of interest payments on the debt. That is another example I give you. Or also the margin they give us. Certain items that were included in the General State Budget in 2023, still lingering from the pandemic, but which are no longer needed. For example, in a specific case, 1.7 billion euros that was in the accounts for 2023 and intended to offset local authorities' fall in tax revenues during the economic standstill caused by the pandemic. This obviously makes no sense today and, therefore, what we are also doing is reallocating it to this commitment of 10.4 billion euros. On parliamentary support. I said this before my first intervention. I know that this is a complex debate, with different opinions in the Lower House of Parliament. It is true that it is a commitment made by a previous administration, the conservative administration of the People's Party in 2014, which left the defence budget at 0.9%, i.e. further away from 2%. What we have done during all this time has been to increase, as I said before, the defence budget by 12 billion euros. This has not prevented us from increasing public services and social policies by 120 billion euros. Or 30 billion euros for the ecological transition. So this is not a zero-sum game. I believe that the good performance of the Spanish economy allows us to address these commitments and anticipate them as we are doing in 2025. And in this regard, I would ask, and I have done so before, but I do so again today, that, given that we are talking about the security and defence of Europe and therefore of Spain, I believe that Spanish citizens are also showing a certain concern about the international context we are witnessing, about the revision of the transatlantic link, about the need for Europe to take a step forwards in taking control of its own security and defence. And also the great opportunity that this whole plan can represent in the technological field. I believe that it would be a good idea for all political forces, especially those that have had the opportunity to govern this country and that made these commitments and did not fulfil them, to put aside more partisan issues and think about the country and think about Europe. Of course, from a material and legal standpoint, it is not necessary to pass this budget reallocation through Parliament. This is exactly what the General Budget Law establishes, because it does not require any additional effort via taxes from citizens or companies. And what we are doing is using the leftovers, also using the savings generated by this good economic performance to anticipate a commitment that, I insist, was made by others and not just by this government, but which is necessary to guarantee security and defence in Europe. And finally, on Sumar. I would say that the partner in the coalition government has obviously made observations in relation to the plan for the manufacture and acquisition of defence and deterrence instruments. We have a disagreement on this point, but I believe that we have managed this disagreement with respect and dialogue, which I think it is also important to stress, as we have done on other occasions. We are not the same party, we each have our differences, but we have always done so with respect and dialogue. Furthermore, there is a consensus between both partners, and I would also like to emphasise this in most of the points of the plan, as well as in the fundamental objective of improving the lives of the Spanish people, protecting their well-being, their values and therefore their way of life. I believe that Europeanism unites the coalition government and the coalition government is united behind this plan that we are presenting today, with, of course, some nuances, such as the one I mentioned earlier in relation to the observations on the plan for the manufacture or acquisition of defence and deterrence instruments.

Fernando Garea (El Español): Good morning, Mr President. You have explained that the reallocation of the budget does not have to go through Parliament, what would have to go through Parliament is the Budget where all this could be formalised. The Constitution has already been breached by not submitting it to the Lower House. If I remember correctly, you promised to submit it to the Lower House in the first quarter that has just passed and you have not done so. They have not yet made it official, and I do not know if they can do so today, that there will no longer be a budget in 2025, and I would like to know if they can commit themselves to complying with the Constitution and that there will be a draft budget before the end of the year for 2026. Thank you.

Response: Well, anyway, reading about the Constitution and its application. In short, it may, it may have some nuances, but in any case the Government of Spain, as I have said on many occasions, is committed to submitting the Budgets. We are working quietly with the parliamentary groups to be able to submit it. But in any case, if we want to meet the commitment of 2% of the budget for security and defence in 2025, it is clear that we have to do it as soon as possible. A colleague of yours asked precisely whether or not we are going to be able to implement these economic resources in 2025. Of course we are going to do it, of course we are capable, but it is clear that if we want to meet the 2% in 2025 we have to do it by reallocating those budget lines. Fortunately, Spain has a very solid, strong economic growth, where, moreover, with this plan we can increase growth by between 4 and 7 tenths of GDP, create more than 100,000 jobs directly or indirectly and, above all, redistribute these opportunities throughout the country. I believe that from this point onwards we will obviously talk to the parliamentary groups to logically comply with this purpose of the General State Budget, but, I insist, with this Budget we comply with this 2% and furthermore we are growing as the main economy in Europe, representing 50% of economic growth or 40% of economic growth in the eurozone and more than 30% of job creation. Therefore, budgets are an instrument and this instrument serves to grow, create employment and redistribute this wealth and these opportunities throughout, in all territories and to all citizens, especially those who need it most. And that is what we are doing. This is the commitment of the Government of Spain. I believe that with this presentation of the plan, Spain has fulfilled the only point of the three legal commitments made by the conservative administration of Mariano Rajoy back in 2014 that remained to be fulfilled. You know there were three of them. One is 2% of the defence budget. The second is that 20% of this investment is for new equipment. We are above those percentages. And the third is the participation of the Spanish Armed Forces in various international missions abroad, and this is something that, as you well know, Spain fulfils with flying colours. I believe this is a step in the right direction, especially in the re-industrialisation of our country. In green and digital. Earlier, someone, a colleague in the media asked if there was a change of direction in what this plan represents. I certainly don't deny it. This Government, as I said before, over the last seven years, has increased the defence budget by 12 billion euros, the budget for social services and public services by 120 billion euros, and 30 billion euros more for ecological transition. And that is also what we are doing at the end of the day. To continue along these lines, to fulfil our commitments, to make Spain what it is, a central, reliable partner of Europe and of the Atlantic Alliance, and to contribute together to guaranteeing and improving the security and defence of our country and of Europe. Thank you very much.

(Transcript edited by the State Secretariat for Communication)

Original speech inSpanish

Non official translation