​Mariano Rajoy asserts that some people wish to liquidate the Spanish Constitution and national sovereignty "in just a day"

Meliá Hotel, Sitges (Barcelona)

As regards Catalonia, Mariano Rajoy stated that he defends "a Spain such as we have today". He also added that "the claims for independence" are "the worst thing that could happen to us all, to all the people of Catalonia and to all the people of Spain" because "this would put an end to our shared centuries of history" and "liquidate the ties of all types that unite us".

The breakaway of Catalonia, a trauma

As regards the pro-sovereignty process, the President of the Government said that this could force the people of Catalonia, who at present are Catalans, Spaniards and Europeans, to choose one of these three statuses. He also added that "they would leave Europe, whatever they may say". On this point, he referred to Brexit and the "unfortunately bad" consequences that this will have, both for the people of Great Britain and for the rest of Europe.

The President of the Government pointed out that any breakaway by Catalonia "would be traumatic", with "terrible" economic consequences. Among other things, he explained, the people of Catalonia would lose European aid and "not be able to try and host the European Medicines Agency".Pool Moncloa/Diego Crespo

Although he expressed his interest in seeking a solution and "new formulas" for understanding, President of the Government Rajoy indicated that he is being asked to do something that he neither wishes nor is able to do. "I do not want to see a referendum held anywhere in Spain that deprives the Spanish people of their right to decide on what their own country is. Not here, or anywhere else in Spain. I neither wish to see nor do I believe that this will be possible while I am the President of the Government".

National sovereignty belongs to the Spanish people

In this regard, the President of the Government added that this referendum can only be authorised by Parliament following a reform of the Constitution "because sovereignty belongs to the Spanish people" and because "the right to decide is a right that belongs to everyone in relation to what they want their country to be".

Mariano Rajoy also spoke about the so-called Transience Act (the content of which was published in the media just a few days ago), a piece of legislation that seeks to liquidate the Spanish Constitution, the Statute of Autonomy of Catalonia, national unity and national sovereignty, as well as "remove Catalonia from Europe" "by a majority" and "in just a day".

A more balanced and sustainable economy

As regards the progress of the Spanish economy, the President of the Government began by recalling the serious consequences of the economic crisis suffered in Spain: Spanish GDP shrank during five straight years (between 2009 and 2013), meaning we lost 10% of our national wealth and more than 3.8 million net jobs were lost. He explained that all of this was "the result of years of rising debt and the accumulation of economic imbalances of every type".

Pool Moncloa/Diego CrespoMariano Rajoy underlined that his government implemented a new economic policy based on two cornerstones: fiscal consolidation and structural reforms. This policy, he added, means that Spain can now enjoy a model of economic growth that is "more balanced and sustainable" based on exports and enhanced competitiveness.

On this point, the President of the Government highlighted the growth figures: 2016 closed with growth of 3.2%, practically double the Eurozone average and higher than the other main European economies. In 2017, he added, the smooth progress of the economy has been maintained, and hence "Spain continues to head up growth in Europe". He explained that by "maintaining this rhythm, "the Spanish economy will surpass, during the first half of the year, the level of GDP prior to the crisis".

Strong job creation

President of the Government Rajoy stressed that economic growth "is translating into strong job creation". In this regard, since the first quarter of 2014, 1.5 million jobs have been created, at an annual rate of half a million.

He stated that the employment figures continue to be buoyant in 2017: the Labour Force Survey (Spanish acronym: EPA) for the first quarter shows that there are almost 18.5 million people in work, and the number of National Insurance contributors is on the rise (this year has seen the best April on record since 2001).

Mariano Rajoy particularly highlighted the dynamic nature of exports, which is also being maintained in 2017 and constitutes "an unprecedented event in recent economic history", and which has allowed the Spanish economy to grow "without getting into debt". In his opinion, at present Spain exports more than one third of its GDP. In short, all of these figures show that Spain is more attractive for foreign investment, he added. "Spain is growing because it is producing more and exporting more".

Upward growth forecast

The President of the Government recalled that Spain has managed to come out of a serious economic crisis "whilst maintaining high levels of social protection". In this regard, he pointed out that "more than 14 million people receive some type of benefit or subsidy from the public authorities". He remarked that without this "social support", our exit from the crisis would have been more complicated.

Mariano Rajoy explained that the government, given the dynamic nature of the first quarter of the year, has raised the forecast for economic growth for 2017 from its original 2.5% to 2.7%. International bodies such as the International Monetary Fund, the European Commission and the Bank of Spain have also raised the figure for Spain. He added that "if we maintain this policy it will be possible to continue making progress", with Spain "at the head of Europe".

Pool Moncloa/Diego CrespoIn terms of the future, the President of the Government stressed that the economic outlook for Spain is good: the economy will grow at an average of 2.5% between now and 2020, "strong" job creation will continue (the aim is to reach 20 million people in work by the end of 2019), the public deficit will be kept below 3% in 2018 and fiscal consolidation will enable debt to be reduced by several percentage points.

According to Mariano Rajoy, all the economic goals will be strengthened if we maintain "our commitment to fiscal consolidation and structural reforms" whilst bearing in mind the current "institutional environment" in which we are obliged to reach agreements with other political forces.

Approval of 2017 Budget

As regards the General State Budget for 2017, the President of the Government pointed out that budget stability must continue to be "an inescapable commitment" in order to exit the Excessive Deficit Procedure in 2018. In this regard, he highlighted the importance of approving the General State Budget for 2017, given that this would send out a "message of stability, seriousness and of a country that is capable, in a difficult parliamentary situation, of reaching an understanding".

The President of the Government also advocated continuing with structural reforms, although without undoing those that have already been set in motion and which "have proved to be useful". "I always stress this issue because I believe that the Spanish economy has a great deal at stake".

The future of Europe

Mariano Rajoy expressed his conviction that the European economy will also "go well". In this regard, he recalled that the President of the European Central Bank, Mario Draghi, announced three years of economic growth in all the Member States of the European Union back in December. He added that the results of the elections in France and Holland have clarified the European skyline, although on the down side we have Brexit.

Pool Moncloa/Diego Crespo

According to the President of the Government, the European Union must do two things: firstly, pay closer attention to the real problems of people and be more effective; two, set a target and speed up the integration process. As regards the first point, the priorities are refugees, economic immigration, the fight against terrorism and the well-being of the European people (employment, economic growth and the Welfare State). In terms of the second question, integration should involve defence and foreign policy and security, banking union and fiscal union. Mariano Rajoy also added that Europe must move "towards a genuine European Budget", including Eurobonds (albeit with certain standards of competitiveness).

Q&A session

A Q&A session followed his speech, led by the President of the Economic Forum, Juan José Brugera, during which the President of the Government answered questions from those attending.

Mariano Rajoy remarked that the challenge remains improving competitiveness and, in this regard, he highlighted the increase in investment in R&D+i by more than 4% in the 2017 Budget. In terms of infrastructure, he stressed that the Mediterranean Corridor is a "top priority" for the government and explained that there is no "turning back" on this project.

He also once again underlined the importance of reaching agreements on the fundamental issues with other political forces, although he recalled that some very important agreements have already been reached (the investiture, the deficit target, the ceiling on spending and the reform of the stevedore sector).

As regards corruption, President of the Government Rajoy answered that this is a "sad and unfortunate issue", but that measures are being taken. Among others, measures have been taken so that judges and prosecutors can investigate and work better, and controls have been stepped up. At any event, he stressed that "we must combat corruption, but we cannot say that this country is corrupt because it is not a corrupt country".

To end, the President of the Government returned to the subject of Catalonia to insist that no referendum of independence will be authorised. He also recalled that "impartiality is all well and good, but not at all times nor in all facets of life".