Mariano Rajoy announces measures to increase size of Spanish companies

Chamber of Commerce of Spain, Madrid

In his speech at the conference on "Business Growth and Competitiveness" organised by the Chamber of Commerce of Spain and the Ministry of Economic Affairs, Industry and Competitiveness, the President of the Government stressed that business size and growth improves the productivity and potential growth of the Spanish economy. For this reason, he explained that action needs to be taken soon to deal with the small size of Spanish companies.

The President of the Government said that 99.8% of the business fabric in Spain is accounted for by small- and medium-sized enterprises. These companies employ almost 10 million people and contribute over 60% of GDP. In comparative terms, he added, OECD data show that 73% of Spanish workers are employed by small- and medium-sized enterprises, whereas only 27% are employed by large companies. In Germany, however, 38% work at large companies; i.e. 11% more than in Spain, he said.

Business growth strategy

Pool Moncloa/Diego Crespo

The President of the Government believes that larger business size facilitates access to financing, allows for a more robust financial structure at companies, fosters engagement in international projects and encourages larger investments, especially in areas such as R&D+i.

In order to foster the increased size of companies, the President of the Government has identified a series of factors on which the Government of Spain will adopt measures: revise State regulations (there are over 130 regulations governing size); maintain an institutional framework conducive to entrepreneurship and investment activity; perfect sector and regional regulations to end fragmentation in the domestic market; improve access to finance by adapting it to the various stages of business development; and foster internationalisation.

The President of the Government said that the government plans for the Minister for Economic Affairs, Industry and Competitiveness to present a report in late July on business size and growth, which will propose "measures capable of helping us move in the right direction in the future".

This approach is being taken in the opinion that, to continue the recovery and achieve the target of 20 million people in work set for 2019, "it is essential to continue with the reforms, not undo those that have already been undertaken, continue controlling the Public Accounts and maintain political stability", said the President of the Government.

Sustainable, balanced and job-creating growth

Pool Moncloa/Diego CrespoMariano Rajoy stressed that "Spain is growing at an outstanding pace and is doing so in a balanced, sustainable and job-creating manner". He specified that Spanish growth stands ahead of the major European economies, at 3.2% in 2016, and insisted that at this rate of growth, we will return to the pre-crisis level of GDP this year.

Spain also leads its European partners in terms of job creation. We have now surpassed 18 million contributors, 18,433,207, and 584,152 jobs were created in the first six months of this year, added the President of the Government.

Mariano Rajoy believes that the data released yesterday on recorded unemployment and Social Security, are "enormously positive, above all, they are highly encouraging and should serve as motivation to continue working in the future".

Calm in the face of authoritarian delusions

Mariano Rajoy stated that "Spain is a modern country that is exiting a severe crisis and facing the future with energy and confidence". It is a country, he added, "with an exemplary democracy, capable of responding to the challenges of the future and the challenges posed by those who would take us back to the past".

To this end, it has "the energy of many sensible, democratic and modern Spaniards, many also Catalans, who are increasingly forgotten due to a radical and divisive turn of events", he said.

"To all those Catalans and to all those Spaniards", the President of the Government said "keep maintaining your confidence in the future because authoritarian and confrontational delusions will never win against the calm and balanced nature of our democratic State", he said.