Casa del Cordón, Burgos
During the closing event of the workshop entitled "Industry in Spain. Reflections", organised by the General Union of Workers (Spanish acronym: UGT) trade union in Burgos, Mariano Rajoy states that "committing to economic growth and job creation requires backing a strong and competitive industrial sector that must be capable of adapting to a changing and globalised environment and the challenges posed by the digital economy".
The President of the Government pointed out that the industrial sector "is rich in permanent employment, in productivity and in investment in R&D". In fact, he highlighted, its temporary employment rate is lower than the average and, in the last year, permanent employment has risen by close on 16%, a higher figure than the national average by more than three points. He also remarked that since it is a leading sector in productivity, its average remuneration exceeds other sectors. Employment in industry, he specified, is growing by 3.6%, while the average of the Spanish economy as a whole stands at 2.27%, and 275,000 of those jobs shed have now been recovered.
In order to tackle the changes that the sector must undertake, Mariano Rajoy declared that it is necessary "to implement suitable economic policies". In this regard, he argued that the government's policy "is good for growth and job creation and for our industry to have the necessary elements to adapt and compete in an increasingly complex, more open and ever-changing world".
Competitiveness and reforms
Pool Moncloa/Diego crespoAccording to the President of the Government, industrial policy in Spain must continue down the line of "building" and not undoing what has already been done. "It would be good for us to do this in agreement with all those involved: the government, social stakeholders and political parties".
The President of the Government expressed the government's interest in agreeing on a Social Pact for Industry or, and this is the same, "all working together in the same direction in order to achieve a strong industrial sector that creates jobs in the globalised economy".
Industrial policy challenge
Mariano Rajoy reviewed four fundamental elements of industrial policy: the digital challenge, energy, the new strategic framework and SMEs.
The introduction of digital technologies, he declared, "is a critical element in competition today, and our companies, particularly in industry, must adapt". To support this digital transformation, the government has approved the Connected Industry Plan 4.0. Furthermore, the government is boosting the rollout of new generation networks so that companies can have physical access to digital infrastructure, he pointed out. By way of example, he mentioned that the Council of Ministers, on 21 April, authorised the calls for proposals for the extension of new generation broadband for a sum of 100 million euros, 58% more than last year.
Energy, key to competitiveness
In relation to energy, the President of the Government pointed out that this is a "key issue" for industry, which accounts for some 70% of all electricity consumption. "We must take responsible and balanced decisions", he argued, "allowing us to meet our environmental targets and the goals for the implementation of new renewable technologies while helping our industry to be more competitive". It is necessary, he added, for these decisions not to generate energy deficits again.
Mariano Rajoy expressed his commitment to not raising the part of the energy bill that depends on the government - regulated costs - as has happened each year since the reform of the electricity sector. He also highlighted that the most recent auctions of renewable energies have taken place at no cost to the consumer.
Pool Moncloa/Diego CrespoThe President of the Government announced that new specific programmes will be approved to support energy efficiency in industry. In the upcoming calls for proposals, he announced, it is expected that industry will receive an advance payment of 40% of the subsidies immediately upon undertaking this type of project.
The connection with the European energy market is another fundamental aspect, according to Mariano Rajoy, who proposed that the Governments of Spain, Portugal and France meet up with the European Commission once again to boost electricity interconnections.
Industrial sectors and SMEs
The President of the Government explained that the government is setting up an integrating strategic framework of all the important elements for industrial policy and mentioned two in particular. First, the employability of workers. The lack of professionals qualified in new technologies, he pointed out, means that hundreds of thousands of jobs remain vacant in Europe each year, according to a report presented at the latest European Council. Second, innovation. In the Budget approved in the Lower House of Parliament on Wednesday, he specified, the heading of R&D+i was increased by 4.3%, "and this must be raised much more in the future, backed up by the collaboration of the whole of the private sector".
Mariano Rajoy remarked that this new framework should be complemented by sector agendas and with a strategy to help boost SMEs, which includes eliminating burdens and reducing costs for entrepreneurship and business growth and facilitating access to financing for industrial investment.
Approval of Budget
Mariano Rajoy pointed out that investment is an essential factor for the industrial sector and, in order to invest, "confidence, stability and lower financial costs" are essential.
To achieve that, he highlighted that the approval of the General State Budget for 2017 sends out a message of confidence both in Spain and abroad, a "horizon of stability and future for social and economic stakeholders", which will contribute to the creation of 500,000 jobs in 2017.
Contribution of social stakeholders to recovery
Pool Moncloa/Diego CrespoThe President of the Government remarked that the Spanish economy has now enjoyed three years of economic growth - two straight years with a growth rate of twice the Eurozone average - and has been creating half a million new jobs each year since 2014.
In his opinion, this achievement is "a collective success due to the efforts of the Spanish people, the reforms carried out by the government and the responsibility of the social stakeholders".
"Social stakeholders, and the UGT in particular, have undoubtedly contributed to the change of course presently being enjoyed by the Spanish economy, and not only because they acted responsibly at times of extreme difficulty, but also because they have made specific and important contributions to our country", he claimed.
Among these contributions, Mariano Rajoy quoted their participation in the 2nd Employment and Collective Bargaining Agreement, the PREPARA Plan, the Active Employment Policies Programme, the Entrepreneurship and Youth Employment Strategy and the Youth Guarantee.
Against this backdrop, Mariano Rajoy recalled that the government is talking with the trade unions on the future of pensions, and pointed out that it is also necessary to reach an understanding on ways to maintain the public health system.
Pool Moncloa/Diego Crespo