Mariano Rajoy asserts that government will maintain growth and job creation forecasts despite situation in China

Lower House of Parliament, Madrid

In a statement to the media in the corridors of the Lower House, Mariano Rajoy asserted that the slowdown of the Chinese economy has affected stock markets and the economies of other countries - above all of emerging countries - but "it will not affect the forecasts for the Spanish economy in the short, medium or long term". For this year, the government forecasts growth of 3.3% - the highest of any European Union country - and the creation of some 600,000 jobs.

The President of the Government argued that Spain can better face these situations of difficulty "as a result of the reforms undertaken" and also because the interest rates of the European Central Bank will continue to remain low, Spanish companies principally export to Eurozone countries and inflation is at a moderate level. Moreover, he pointed to a positive event that took place on Tuesday: the Treasury has issued three-month T-bills with a negative interest rate, "in other words, we are paid to issue them".

Mariano Rajoy highlighted that the Draft General Budget for 2016 constitutes "an exercise in responsibility" and offers "security" and "certainty" to economic and social agents.

The full debate on next year's public accounts began on Tuesday morning in the Lower House of Parliament with the presentation of the Budget by the Minister for the Treasury and the Public Administration Services, Cristóbal Montoro, and was due to go on into Wednesday.

Constitutional reform and pardon for Josefa Hernández

Pool MoncloaAs regards a constitutional reform, the President of the Government pointed out that the priority for the next term of office will continue to be "job creation, the consolidation of the economic recovery and improving the Spanish welfare system", "Aside from that", he added, "if there are other groups that wish to do this, we are prepared to sit down and talk".

Mariano Rajoy also announced that the government will approve a pardon for Josefa Hernández at Friday's Council of Ministers, the first after the summer break who, as from Monday, is serving a six-month jail sentence in Tahíche (Lanzarote) for not pulling her house down, which was built on protected land.

"This is common sense because a profoundly unfair situation has been created, which I would go so far as to say is absurd", he stressed. According to the President of the Government, it now falls on the Regional Government of the Canary Islands to offer a home to Josefa Hernández "in order for her to thus serve out her sentence and demolish her present home".

Condolences on death of José María Benegas

On another note, Mariano Rajoy expressed his condolences on the death of the historic Socialist leader José María 'Txiki' Benegas. "He was a political adversary, but he was a competent, capable man, with whom it was possible to talk and reach agreements", he remarked.

At the start of the Plenary Session, a minute of silence was held in memory of José María Benegas, an MP for 10 terms of office.