"Employment, growth and confidence are the hallmarks of the change in Spain over the course of this legislature", says Mariano Rajoy

Moncloa Palace, Madrid

Mariano Rajoy said that the Royal Decree to dissolve the Lower and Upper Houses of Parliament and call elections, which will be published tomorrow in the Official State Gazette, concludes a legislature of "transformation in this country, of intense and far-reaching change", in which Spain "has demonstrated its energy and enormous capacity to overcome a complicated situation in record time".

The President of the Government said that employment, growth and confidence "are the hallmarks of the change in Spain over the course of this legislature". "We have emerged from the shadow of a potential bail-out to inspire confidence; from the longest recession to the highest growth; and from the worst job losses to the best unemployment reduction in our history", he stressed.

Employment figures are the clearest indicator of this change

Pool Moncloa / Diego CrespoThe President of the Government believes that the Labour Force Survey (Spanish acronym: EPA) figures published last week "enable us to predict that 2015 will be the year posting the best unemployment reduction in the entire history of Spain and guarantee the labour reform approved at the start of this legislature, which has meant that dismissals are no longer the first tool used by companies to adapt to the economic situation".

Mariano Rajoy recalled that unemployment has fallen by 10.6% in one year - an unprecedented result, that there are 436,000 fewer unemployed than at the start of the legislature and that the number of Spaniards in work has risen to 18 million again. Furthermore, the number of households where every family member is out of work "is falling every day" and, in year-on-year terms, 1,430 job losses daily in 2011 has been turned around to the creation of 1,492 in 2015.

"This is the reason that justifies not only the policies and reforms adopted in terms of the labour market but all the reforms we have implemented in other areas", said the President of the Government, for whom the fight against unemployment will remain a priority for the Government of Spain in the years to come.

Balanced and sustainable growth

The President of the Government remarked that, in this legislature, Spain has recovered from recession to post the highest growth of all the major Eurozone countries and that, unlike on previous occasions, this "is taking place in a balanced and therefore sustainable manner". "We are not achieving growth by borrowing but rather because we are more competitive and exporting more overseas. As a proportion of GDP, Spain exports more than the United States, Japan, the United Kingdom and France", he added. Furthermore, he stressed that Spain has gained competitiveness without "devaluing its currency".

Confidence both within Spain and overseas

Pool Moncloa / Diego CrespoMariano Rajoy believes that Spain is inspiring confidence because its public deficit has been halved - from 9% to 4.2% - and because the risk premium has fallen drastically to now stand at 110 basis points, which has enabled the State to save over 20 billion euros in servicing debt - equal to "the increase in pension spending in this legislature and what we will spend next year on unemployment benefits".

Furthermore, there is renewed confidence in the financial system, which "we have managed to clean up entirely, enabling a return of the credit needed by households and businesses".

"Spain can feel proud today, because it has successfully overcome the worst crisis we have known without leaving anyone by the roadside. We did not sacrifice pensions, we did not suspend unemployment benefits and we did not let defaults strangle the healthcare system", stressed the President of the Government.

Mariano Rajoy maintained that almost 9.5 million Spanish pensioners have received their money on time, and pensions were not frozen or reduced in any way. "Since we have been in power, spending on pensions has risen in Spain by 19.44 billion euros and the average pension is over 1,000 euros", he said. Furthermore, he maintained that the unemployed "have received their benefits on time" and that the debt of 75 billion euros held by the public authorities with their suppliers has been resolved.

Reformist legislature

Mariano Rajoy presented the main improvements made by his government in this legislature, such as the average tax reduction of 14.6% in the period 2014-2016, from which citizens on average or low incomes will benefit most. He also mentioned the overall reduction to withholdings taken from all salaried employees and the self-employed, as well as the reduction made to the tax rate applied to companies.

According to the President of the Government, all this was accompanied by an enormous effort to combat fraud that has allowed over 41 billion euros to be uncovered to June. This amount could rise to 48 billion by the end of the legislature.

Mariano Rajoy said that his government has adjusted the size and increased the efficiency of the public authorities by eliminating 2,300 entities, leading to a total saving of over 30 billion euros. He also said that the escalation of energy prices has stabilised and that "there is no longer a tariff deficit and prices are starting to come down". Furthermore, he confirmed that "records are being broken in terms of net company incorporation" and competitiveness has risen ten points when compared with other members of the Eurozone.

Respect for the law and combating corruption

Pool Moncloa / Diego CrespoThe President of the Government also reviewed some of the "serious problems" faced by the Government of Spain during this legislature, starting with "the secessionist challenge from the Regional Government of Catalonia" that "has splintered Catalan society" and represents a "lack of loyalty from the Regional Government of Catalonia to the Spanish Constitution".

Mariano Rajoy stressed that national sovereignty, the rights of Spanish citizens and their equality cannot be negotiated, as only the people of Spain as a whole can decide these issues. "Dialogue, always; respect for the law and our institutions, as well: that has been my position vis-à-vis the Regional Government of Catalonia during this legislature and that position will remain unchanged with the next regional government, whatever its composition and whoever is its president", he said.

The President of the Government highlighted the fight against corruption as another of the major challenges and said he is "fully aware of the damage and discredit" caused to the public perception of politics by the scandals that have come to light in recent years. He said that, to combat these scandals, the State security forces, the Public Prosecutor's Office and the courts have acted "with more autonomy and freedom" than ever and an unprecedented raft of legal reforms were approved. The most recent of them has led to the creation of the Office for the Recovery of Assets stemming from Criminal Activities.

Comprehensive solution for the refugee crisis

The President of the Government recalled that, during this legislature, the European Union has experienced its own crisis in which the survival of the Euro was in question. In this regard, he referred to his efforts to defend the viability of the single currency and with Spain as a part of it, as well as the proposals he made to achieve progress on Banking Union and Fiscal, Economic and Political Union. In his opinion, Spain has achieved satisfactory results in the negotiation of the EU budget and the Common Agricultural Policy, as well as regarding the promotion of energy interconnections.

As regards the refugee crisis, "the most dramatic issue we must face in the short and medium term", Spain has offered its experience in border management and advocates "a comprehensive solution that involves taking action on the root causes leading to this widespread exodus", he said.

Stability and dialogue

Pool Moncloa / Diego CrespoThe President of the Government views political stability as one of the keys to the success of the reforms, "a product of sound parliamentary support". Furthermore, Mariano Rajoy defended the Government of Spain's willingness to enter dialogue with opposition groups, social stakeholders and public authorities, embodied, among many other examples, in the Pact against Jihadi Terrorism, the Activation Programme for the Long-term Unemployed and the Regional Liquidity Fund.

The President of the Government reiterated his gratitude "to all the people of Spain for their extraordinary conduct in these very difficult years" and their recognition of the Crown, King Felipe VI and his father, King Juan Carlos. The "exemplary" manner in which the change of Head of State took place during this legislature is another demonstration "of what Spain is today: a modern, stable country with fully consolidated institutions that work", he said.

Search for the missing servicemen

Before taking stock of the legislature, Mariano Rajoy expressed his support for the families of the three Spanish servicemen who have been missing since last Thursday: José Morales Rodríguez, Saúl López Quesada and Jon Ander Ojeda Alemán. "Rest assured that the Government of Spain and its Armed Forces will not rest for a minute until we find them", he added.

Answers to questions from the media

The President of the Government said that "he will do everything in his hands to remain in power because that is what Spain needs". In his opinion, "it would be very sad, very difficult and would mean we have wasted our time were we to go back on everything that has been achieved in these almost four years of government", in which the "foundations for the future" have been laid.

The President of the Government referred to avoiding a bailout as one of the correct choices made in this legislature because it has enabled, for example, neither pensions to be lowered nor VAT on restaurants to be raised to 23% as was the case in a number of other EU countries.

Among the decisions he was not happy to take but "regarding which I had no viable alternative", he referred to raising certain taxes and suspending the Christmas payment for civil servants in 2012.

As regards the Spanish Constitutional reform, Mariano Rajoy stressed that it will not be included in the election manifesto of his party because it is not considered a priority; the main priority continues to be the creation of two million jobs in the next legislature. Nonetheless, he clarified that he is - as he always has been - "open to listening to the proposals offered by others", although he cannot envisage a consensus on the fundamental issue - the territorial model.

Once again, the President of the Government expressed his agreement with the idea that the party receiving the most votes should come to power because it is the one with the most extensive public support. In line with this conviction, he said that, "if I am not the leading political force, I will not try to be President of the Government because I will respect the voice of the people".