Mariano Rajoy highlights positive forecasts from European Commission for Spain both on employment and GDP growth

In his speech Mariano Rajoy underlined the new trends opening up in the European Union characterised by economic recovery, overcoming the Euro crisis, progress on Economic and Monetary Union and the new political cycle following the elections to the European Parliament held last May. He also highlighted that year-on-year growth of the Eurozone economy in the fourth quarter of 2014 stood at 0.9% and 1.2% for the EU as a whole. This reached 2% in Spain.

The employment figures for the same period were also positive, added the President of the Government: year-on-year growth stood at 0.9% in the Eurozone, 1% in the EU as a whole and 2.4% in Spain. "The Eurozone is maintaining its recovery and, for the first time since 2007, the economies of all Member States are expected to grow in 2015", pointed out Mariano Rajoy.

Energy Union

According to the President of the Government, the March European Council focused on the so-called Strategic Agenda and specifically in the following three areas thereof: Energy Union, growth, employment and the European Semester, and finally, foreign relations. As regards the first point, Mariano Rajoy stressed that the progress made in terms of Energy Union is "an important milestone in European integration" and "a major success for Spain".

The President of the Government pointed out that Energy Union "seeks to provide the EU with a common, secure, sustainable and competitive energy system". The EU has "highly fragmented" energy markets at the present time, something which is "particularly serious" for Spain because this results in significant energy costs. According to Mariano Rajoy, Spain, which has persevered in its efforts to take steps towards Energy Union over the last three years, has managed to place the problem of energy isolation firmly at the heart of the European debate.

In this regard, he recalled the achievements made at the European Council in October 2014, at which the EU's actions on climate and energy from now to 2030 were established and a leading role was assigned to interconnections. He added that this progress was consolidated at March's European Council.

He also explained that "Spain will be the main beneficiary" of these achievements and that the goal is to increase interconnections from the current 4% to 10%. Mariano Rajoy also recalled the inauguration of the High-Voltage Spain-France line on 20 February and the "key progress" achieved with the signing of the Madrid Declaration by France, Spain, Portugal and the European Commission on 4 March.

Growth, employment and the European Semester

Mariano Rajoy pointed out that the priorities in this area include driving growth, employment, competitiveness and investment. As regards Spain and according to the winter forecasts from the European Commission, GDP growth will amount to 2.3% in 2015 and 2.5% in 2016. According to the European Commission, five factors explain this positive trend: an increase in domestic demand, an improved labour market, more affordable financial conditions, greater confidence and a fall in energy prices.

According to Mariano Rajoy, the European Commission considers that job creation will speed up in the coming months in Spain: unemployment will fall to 20.7% in 2016, 6 points lower than in 2013. The President of the Government added that unemployment is falling at a year-on-year rate of 7.2% and that the number of National Insurance contributors is on the rise.

Pool MoncloaIn terms of the public deficit, Mariano Rajoy claimed that "we are on the right path to meeting the target of 4.2% in 2015" and the target set for 2016 of 2.8% in the Stability and Growth Pact. He highlighted that confidence in the Spanish economy has increased and that it is now cheaper to access finance in the financial markets. Moreover, Mariano Rajoy announced that the government will shortly approve and submit its National Reform Plan and its Stability Programme to Brussels.

The President of the Government also referred to the Juncker Investment Plan which seeks to mobilise 315 billion euros to be allocated to financing both for major infrastructure projects and initiatives for small- and medium-sized enterprises. Spain will take part in this plan through the Official Credit Institute.

EU-US Transatlantic Trade and Investment Partnership

Mariano Rajoy stressed the importance for growth, employment and investment of the signing of the agreement on the Transatlantic Trade and Investment Partnership (TTIP) between the EU and the United States. The aim is to reach "an ambitious global agreement before the end of the year". He explained that this is a fundamental alliance because the EU and the United States represent approximately 47% of global GDP, in other words "the potential for growth is significant".

In terms of the EU's foreign relations, Mariano Rajoy pointed out that the European Council tackled four issues: the European Neighbourhood Policy, the Eastern Partnership Summit, the conflict in Ukraine and relations with Russia, and the situation of Libya. The President of the Government highlighted the Mediterranean dimension of the European Neighbourhood Policy and mentioned the informal ministerial meeting between the EU and its Mediterranean partners held on 13 April in Barcelona.

As regards the Eastern Partnership Summit to be held in Riga on 21 and 22 May, the President of the Government pointed out that the European Council underlined its support for its six eastern neighbours (Ukraine, Moldavia, Belarus, Georgia, Azerbaijan and Armenia) and the need to develop cooperation with these countries. In terms of the situation in Ukraine and relations with Russia, he stressed that the priority is for the parties to the conflict to "swiftly and fully apply the Minsk Agreements".

Pool MoncloaIn relation to Libya, the European Council's Conclusions stated that the most important aspect is to reach an immediate and unconditional ceasefire and for the parties in conflict to reach an agreement to form a national unity government. As regards illegal immigration, Mariano Rajoy stressed the need to better manage migratory flows.

Remembering the victims of the Alps and of the terrorist attacks in Tunisia

By way of summary, Mariano Rajoy remarked that the European Council meeting held on 19 and 20 March was "fruitful" because it showed the EU's ability to "focus its efforts and take steps on issues that form part of its strategic priorities".

At the beginning of his speech, Mariano Rajoy gave a few words of remembrance to the victims of the accident to the Germanwings plane in the French Alps and to the victims of the terrorist attacks in Tunisia in March. On this second issue, the President of the Government said that, although progress is being made, prevention still remains essential, as is collaboration between the countries on both shores of the Mediterranean because Jihadi terrorism is a common threat.