President’s speech - 16.07.2010

The President of the Government defends a new production model for securing future welfare.

The President of the Government, José Luis Rodríguez Zapatero, defended his opinion that Spain must conclude its transition to a new, more competitive and more efficient production model as soon as possible because the welfare and future of the country depends on it.
In his speech at the State of the Nation Debate, the President of the Government said that the country will need to remain steadfastly focused on two priorities to achieve this transition to a new production model: firstly, rigorously maintaining the commitment to austerity and reducing the deficit; and secondly following through with the programme of reforms already begun by the Government.
He also said that these two priorities must be achieved without forgetting the series of values that the public supported with their majority vote at the last elections.
The President of the Government warned that Spain must be aware of the fact that "if we want prosperity, we must be more productive; if we want jobs, we must give ourselves a labour market that works better; if we want social policies, we will need revenue and budgetary capacity to finance them and the political will to undertake social redistribution".
He added that that is precisely what he wants for his country: "prosperity, jobs and social policies".
In order to achieve a profound transformation in the Spanish economy, the President of the Government called on the effort and support of all parliamentary groups, the various Public Authorities, the citizens and the organisations in which the public places its trust.
Assessment
 
The President of the Government began his speech by summarising the most important events to have taken place since the last State of the Nation Debate on 12 May 2009.
He recalled that the people of Catalonia held a referendum four years ago on a Statute of Autonomy, which was approved by the Lower House of Parliament, and said that the Government supported the Statute in Parliament and has contributed towards its development and application over the course of these last four years.
He added that the Constitutional Court "has comprehensively supported the constitutional nature of the Estatut against the global defiance of those who would challenge it" and announced he will assess the possibility of some of those aspects that have been declared unconstitutional, not for fundamental reasons but rather because of the way they were constructed, being addressed through the constitutionally appropriate channels and that he will do so in dialogue with the Regional Government of Catalonia.
On issues related to security and anti-terrorism policy, the President of the Government stressed that ETA continues to be weakened thanks to the efforts and effectiveness of the State Security Forces and Organisations, which have repeatedly crippled its organisational structure, to cooperation from France and Portugal and to the unity of all parties in the defence of our liberties.
He remembered the victims of terrorism and said that the best possible tribute to them would be to uphold democratic unity and put an end to the terrorist group.
The President of the Government also referred to the challenge of guaranteeing the safety of Spain's fishing fleet in Somalia, to the missions being undertaken by the Spanish Armed Forces abroad and to achieving the quick release of the two Spanish aid workers still being held captive in Africa.
He added that, for yet another year, crime rates in Spain have fallen to among the lowest levels in Europe and that road safety in Spain is now above the European average.
For José Luis Rodríguez Zapatero, the economic crisis and, in particular, the employment crisis continue to be the "main concerns of the Government and the Spanish people".
The President of the Government stated that tackling this crisis now requires, above all else, fiscal consolidation and finding for new ways to stimulate growth.
Along the same lines, he recalled that the measures adopted by the Government were initially focused on easing the immediate effects of recession, such as the Plan E, for example, but added that the reforms now being proposed by the Government are aimed at renewing the country's growth model.
The President of the Government also mentioned the Sustainable Economy Act, which is currently being passed through the Lower House of Parliament and whose purpose is to stimulate this renewal of Spain's model for growth.
He also spoke about the Decree-Law approving reforms that affect the stimulation of property redevelopment, favour the liquidity of companies, target payment defaults, plan the energy model of the future and promote sustainable transport.
José Luis Rodríguez Zapatero also spoke about the raft of adjustment measures, approved in the 2010-2013 Austerity Plan, to guarantee the 3% deficit objective in 2013.
Current situation
The President of the Government highlighted that Spain came out of recession in the first quarter of 2010 with quarter-on-quarter growth of +0.1%, following six consecutive quarters of declining GDP.
The activity indicators for the last few months, the number of contributors to the Social Security System, industrial production and customs and tourist expenditure data all point to the probability of further growth in the second quarter, he added.
He said that both households and companies in Spain have begun a process of rapid debt reduction. In fact, he indicated that Spanish companies have reduced their need for finance from 11.5% to 1.2% in only two and a half years.
These are encouraging signs, said José Luis Rodríguez Zapatero, and lead the Government to maintain its forecasts for 2010 as a whole, with slightly negative year-on-year growth (-0.3%) but with neutral or positive quarter-on-quarter growth rates and a noticeable trend towards improvement from the last quarter of the year onwards. The same applies to Spanish employment figures, he added.
Reforms
The reforms implemented by the Government affect the financial system, the labour market, the pension system and various specific sectors linked to competitiveness, such as those related to services, innovation, the way justice operates, energy, industry and education, he explained.
The President of the Government reiterated that now is the time to conclude all these reforms in anticipation of a return to growth that is capable of reducing unemployment and laying the foundations for sustainable economic growth in the decades to come.

He added that, although these are structural reforms, their beneficial effects could be immediate and that is why the Government is offering and seeking the highest degree of political and social consensus through the various forums for dialogue, he said.