Pedro Sánchez says the EU will respond "proportionately" to "unfair tariffs" and argues that "it is time to protect Europe"

Banco Santander Auditorium, Madrid

The President of the Government of Spain, Pedro Sánchez, during his speech in the closing the ceremony of the XI Cepyme Awards (Pool Moncloa/Borja Puig de la Bellacasa)

Pedro Sánchez said that "if we want a Europe that protects the most vulnerable, our young and old, our environment, agriculture and business, it is time to protect Europe." In the face of challenges such as "unfair tariffs and threats to our sovereignty," he defended the international order based on "cooperation and mutual benefit, without submission" and asserted that a "united" Europe will respond "proportionately".

He said this during his speech at the closing ceremony of the 'Eleventh Cepyme Awards', held today at the Banco Santander Auditorium in Madrid, which was also attended by the Second Vice-President of the Government of Spain and Minister for Work and Social Economy, Yolanda Diaz.

Pedro Sánchez pointed out that we must be "aware of the enormous gravity of the moment we are living in," in the face of geopolitical tensions, interruptions in the supply of raw materials or changes in demand caused by erratic tariff policies, which are "real threats". "They all share the same origin: the questioning of economic openness and multilateral institutions in trade," he said. Against this backdrop, he argued that "in a context in which others are closing down, Spain and Europe are doing the opposite: opening up to the world and forging new alliances so that our companies can operate." These include the trade agreement with Canada, the update of the agreement with Mexico, the agreement with Mercosur, the negotiations launched last week by the Commission in India and the resumed talks with relevant countries such as Malaysia.

"Open hand for dialogue and collaboration"

The President of the Government of Spain, Pedro Sánchez, and the Second Vice-President of the Government and Minister for Work and Social Economy, Yolanda Díaz, during the ceremony of the XI Cepyme Awards | Pool Moncloa/Borja Puig de la Bellacasa

In his opinion, the way forward should be one of "cooperation, multilateralism, understanding" and "the defence of an international order based on cooperation and mutual benefit, without submission, in which justice prevails, and not the law of the strongest." In this sense, he warned that certainty in the geopolitical scenario is now "at stake", something "vital" for companies and SMEs, although at this "crossroads" he wanted to make it clear that "Spain is not alone", as it is part of the European project, an experience that "has contributed decisively to the prosperity and modernisation of our country." The European Union is, without a doubt, the best thing that has happened to Spain in centuries of history," he added, as it brings "prestige" and allows Spanish products "made in Europe" to open doors to the world and to be a guarantee of "excellence, good practices and quality."

For all these reasons, he stressed that "now is the time for all of us to stand up for Europe, including the business world." Nevertheless, he emphasised that the EU "is stronger than even we think it is," being the world's largest trading bloc and a global power. "We have the capacity to defend our interests against those who attack us with unfair tariffs and threats to our sovereignty. We will respond proportionately to any challenge, with all the strength and solidarity of a united Europe," he stressed, recalling that this was done during the pandemic and in the face of the invasion of Ukraine. However, with "an open hand for dialogue and collaboration, in defence of multilateral international trade that opens up opportunities for our SMEs."

SMEs, a "national success story"

The president highlighted the contribution of SMEs: "They are decisive in the extraordinary performance of our country, a collective, national success that we are achieving against all odds and with many factors working against us." Despite the complicated international context, "Spain is not only resisting, but is advancing with more strength than ever." In this respect, he referred to the employment data for February, published yesterday, which shows an increase in Social Security membership and a fall in registered unemployment in a month where it usually rises, with almost half a million more jobs in year-on-year terms and record membership. "We are the driver of job creation in the EU," he extolled, while at the same time raising wages and reducing the gender gap.

"While in the world the wave of regression is growing in all areas, including the economy, Spain continues to advance and is today the economic locomotive of Europe thanks, to a large extent, to our SMEs, the stem cells of the productive fabric," he added. In this regard, he recalled that Spain generated half of the growth in 2024 and will double this year the average for the euro zone as a whole, while temporary employment has been reduced to rates unseen in four decades, productivity is growing and the lowest unemployment rate in 17 years has been recorded, with a decrease in the wage gap of almost seven points. In view of this "national success", he believes that we should feel "legitimate national pride" and that SMEs "can take pride", since the value of exports is 40% higher than it was seven years ago and one in three SMEs sells online abroad.

Priorities: reducing bureaucratic burden, AI, scaling up and training

The President of the Government of Spain, Pedro Sánchez, next to the winners in the closing ceremony of the XI Cepyme Awards | Pool Moncloa/Borja Puig de la Bellacasa

Pedro Sánchez has cited four main priorities for the future of small and medium-sized companies. Firstly, the simplification of bureaucratic burdens, for which he stressed the need to build a complete single market and pointed out that, if many of its administrative tasks were eliminated, it would have a multiplier effect on economic growth on the continent, even greater than any tariff barriers that might be imposed by other trade blocs. He also mentioned the reduction of administrative costs to boost the competitiveness of companies, for which he referred to the creation of the European Competitiveness Laboratory, which will be launched on 13 March in Valencia at the European Competitiveness Summit, and the 'Regime 20' initiative, to eliminate disparities in administrative requirements and reduce red tape.

Other priorities are to increase the roll out of technologies such as artificial intelligence in SMEs, with the aim that, by the end of the decade, three out of four Spanish companies will be using this technology or cloud computing; and to continue boosting the growth in the size of SMEs with internationalisation. For now, progress is "encouraging", he said, as the number of companies with between 20 and 49 employees has grown by 15% since 2021, and by 9% in the case of companies with between 50 and 99 employees. "The leap from small to medium-sized companies is crucial to strengthen our productive fabric and we will continue to support it with determination and resources," he said.

Finally, he stressed the need to further intensify the commitment to human capital training. There are currently more than 8 million people over the age of 16 in training programmes, 37% more than in 2019, and 1.5 million enrolled in Vocational Training. The government has increased the number of vocational training places by 300,000 and yesterday the Council of Ministers approved an allocation of 2.54 billion euros in scholarships.

In conclusion, the president of the Government of Spain defended European values in the face of current challenges. "Now, more than ever, is the time for temperance and firmness. In recent years, we have learned to navigate the storm with character, determination and a steady hand. We will do it again now if necessary," he concluded.

Non official translation