Closing remarks delivered by the President of the Government of Spain at the event 'Green and Digital Spain'. Impact of the Recovery Plan'

SPEECH BY THE PRESIDENT OF THE GOVERNMENT OF SPAIN, PEDRO SÁNCHEZ

Good morning. First of all, to the members of the Government, and of course also to the President of the Board of Trustees of the Teatro Real, my dear Gregorio, as well as to the authorities, ladies and gentlemen: good morning. Also, of course, to the representatives of the European Commission who are here today and who are joining us for what is a very special occasion for the Government of Spain.

Tomorrow, Tuesday 23 June, marks the tenth anniversary of the referendum that led to Brexit. And, by the way, I would like to take this opportunity to express my appreciation and warm regards to Prime Minister Starmer. But on that day, the second-largest economy on the continent of the European project took the decision - unprecedented in the history of the European project - to leave the European Union. Nothing like this had ever happened before. In fact, we spent a great many meetings discussing precisely how to organise the exit of the continent's second-largest economy. The project, the European Union, which had been growing and progressing steadily for six decades, suddenly began to shrink and contract. There was no instruction manual, nor was there a roadmap for a scenario no one had ever imagined: one of the most important countries leaving a shared project. But what there was, and what led to Brexit, was precisely the need to answer questions that urgently needed to be asked. The most important question, perhaps of all, was at what point and why the European project had ceased to be attractive to the citizens of Europe. Undoubtedly, as with everything in life, there is no single factor, no single excuse or argument that can justify it all. But it was impossible to separate that wave of Euroscepticism from the response - if I may say so, a clumsy, slow and cruel neoliberal response - to the financial crisis.

Let's now fast-forward four years to the summer of 2020. The COVID-19 pandemic was still wreaking havoc. The global economy was collapsing because of a virus for which we still had no cure; there was no vaccine. It was there that Europe came to terms - I would say with its own soul - and gave rise to what we now know as the Next Generation funds. Spain believed in Europe. And I think Europe came to believe in itself again. It certainly wasn't easy. The negotiations dragged on for four days and four nights, during which we had to overcome some painful prejudices. The myth of a Spain - and indeed of other countries in the southern Mediterranean - buried under mountains of debt, full of idle people who knew only how to live off benefits. These were prejudices that were resurfacing, just as they had during the financial crisis when it came to devising EU responses. It was, of course, painful to witness - especially in the midst of the Covid-19 pandemic - yet another display, if I may say so, of hurtful clichés coming from the mouths of certain European leaders. But, if I may say so, it was even more painful to have to hear these things here, from the mouths of some who, even in a situation as dramatic as the COVID-19 pandemic, were unable to show any patriotism or pull their weight.

By the end of the summer, I believe we will have brought to a successful conclusion an extraordinary endeavour that began back in the summer of 2020. By 31 August, we will have fully implemented the Recovery, Transformation and Resilience Plan. To put it another way, our economy will have completed a process of modernisation and transformation that is probably unprecedented in the more than four decades of our democracy. It is clear that the Spain that is a dynamic, creative benchmark - the figures back this up-has prevailed over that "different," lagging Spain that some were determined to resurrect. And let me be very clear, because there is no better reason to govern this country than to bring this decade leading up to 2030 to a fitting close, placing Spain where it deserves to be: at the forefront of Europe.

Six years ago, we fought the battle for European funding. But the true victory lies not in having secured them - though we certainly worked incredibly hard for them - but rather, I believe, in having used them well; something that had not always been done in the past.And there are examples we all remember: airports without planes but with giant statues, ports without ships and "Cities of Culture" with cost overruns of up to 300 per cent. In short, monuments to corruption. This is not a tale of misfortune; it represents the total absence of a national vision - of a model for Spain's transformation and progress.

Six years ago we had to make a choice; we had to decide. In politics, as in life, we have to make choices. And, when it came to choosing between building battery and microchip factories or squandering money on grandiose projects, this time we made the right choice. That is why we are dedicating two out of every three euros to the goals set out here: A green and digital Spain, committed to digital transformation and the green transition; and that is why the Spain of get-rich-quick schemes has given way to the real Spain - the Spain of hard work and entrepreneurship.

That is the great achievement we are celebrating today. The plan, financed by Next Generation funds, has met the three objectives that give it its name-objectives that served as the guiding principles for those of us involved in its inception and, of course, for everyone who has contributed in one way or another over the years. Firstly, recovery; secondly, transformation; and finally, resilience.

Recovery, obviously, because we suffered a double-digit slump in Gross Domestic Product-20%, according to the National Statistics Institute-as a result of the lockdown. We had to recover from an unprecedented shock. Never has a crisis been so severe, so sudden, so rapid - with, as I said earlier, a double-digit slump in GDP in just one year. And never before have we emerged from one so quickly and so strongly. Spain is the European economy that has grown the most since pre-Covid levels And the figure is spectacular. It is remarkable. 8.5 per cent. Let me repeat the figure: 8.5 per cent, which is 40 per cent higher than the eurozone average, and 22 times higher than Germany's - let me repeat, 22 times higher than Germany's. Today, therefore, we are-I was going to say the engine, but certainly one of the engines, and without a doubt one of the most powerful in the single-currency bloc in terms of economic growth; with barely 10% of the total GDP, we contribute nearly one-fifth of the growth and create more than half of all new jobs in the Eurozone. In the last year alone, 600,000 new jobs have been created, and we have just surpassed-as was likely mentioned earlier - 22.5 million Social Security contributors. Spain, therefore, is surpassing itself. What's more, I believe we will continue to do so. The Government is, of course, going to fight tooth and nail to get the National Budget through. Budgets that must once again be fiscally rigorous, socially expansive and transformative in the digital and environmental spheres; the best tool for continuing to grow and improve people's lives.

So, first of all, recovery. Secondly, green and digital transformation. Thanks to the Next Generation funds, we have mobilised investments - unprecedented ones, I would say - aimed at accelerating the transition toward a production model that is much greener, much more innovative, and consequently, more competitive.
For it is in these areas-the digital realm, cohesion, territorial convergence and the ecological transition - that the factors determining our current and future sustainability and competitiveness are at stake, alongside our human capital. It is a model driven by renewable energy - crucial at a time like the present, as we endure successive energy shocks stemming from armed conflicts - as well as by sustainable mobility, emissions reduction and, of course, the vital issue of energy efficiency. This Teatro Real, my dear Gregorio, is the best proof of that. The 2,198 walkable photovoltaic tiles - that is, tiles that can be walked on - covering its roof, funded under the Recovery, Transformation and Resilience Plan, make it the most sustainable theatre and opera house in the world. Congratulations on this commitment. And a model that is complemented by a firm commitment to training - as I said earlier - in human capital.

Thanks to the driving force of these funds and the link to necessary reforms, we now have a regulatory framework that is, I would say, fit for the Spain and Europe of 2026. Over these years, 400,000 new Vocational Training places have been created. Today, for a great many students - both young men and women - vocational training is a natural next step in their education, enabling them, ultimately, to improve their future employability. And those 400,000 new Vocational Training places exist because we passed a law that was part of the Recovery, Transformation and Resilience Plan. The fact that 200,000 people under the age of 25 are working in the digital sector and more than 40,000 in what we might call the green economy is down to the commitment we boldly undertook and the plan we drew up when we received those funds. And if Spain is currently ranked seventh in Stanford University's artificial intelligence ranking and sixth globally in terms of the adoption of artificial intelligence, according to Microsoft, this is also thanks to the Next Generation funds and, of course, to the Government's vision of devising plans committed to digital transformation and the ecological transition. I believe this is a major success - and a success that, I should note, bears a woman's name in many instances; I want to highlight this, as it was a cross-cutting line of action alongside social and territorial cohesion. Real and effective equality between men and women also goes a long way towards explaining the design and cross-cutting policies of that fund. This is no coincidence, as it reflects a genuine commitment to feminism and gender equality - not merely as one of the four pillars on which, as I mentioned earlier, we based the plan, but as a cross-cutting mechanism that was intended to underpin each and every one of the lines of action. We are the major European economy that has received the largest amount of transfers relative to its Gross Domestic Product. We are talking about more than 60 billion euros - no small sum - representing a massive management undertaking. I want to acknowledge the efforts of all the ministers involved and, through them, the technical staff, civil servants and public servants who have done so much to ensure the successful management of these "Next" funds. Sixty billion euros, as I was saying, when - fingers crossed - we hope to see the sixth instalment of these European funds come through in the coming weeks. At this most recent Council of Ministers alone, we approved an investment of 720 million euros for a new artificial intelligence gigafactory in our country.

We have not only managed and designed these funds well, but we have done so with the aim of ensuring the resulting transformation reaches every part of the country. That is why social and territorial cohesion are so important.
Regarding that 720-million-euro gigafactory investment specifically, we are talking about a project where Catalonia and Madrid will undoubtedly play a leading role. That is why we view social and territorial cohesion as another of the plan's key cross-cutting themes, to boost job creation and ensure that the recovery reaches all regions, thereby narrowing economic and demographic gaps. There are examples of such plants all over Spain; I'm thinking, for example, of Sagunto, and the battery plants in Navalmoral de la Mata and Figueruelas. And also the decision to make Huelva the largest green hydrogen hub in the whole of Europe. Or the synthetic diamond factory in the Extremaduran town of Trujillo. Microchips in Vigo, Zaragoza and Málaga. Meteorological equipment in La Laguna, solar panels in Asturias, rocket manufacturing in Elche. In short, we could cite example after example affecting every region - projects that have a major impact and serve as powerful catalysts for this new industrial landscape. These are not mere wishes, nor are they empty words; they are realities, projects that are coming to fruition in many other regions that have long been marginalised throughout our country's history. Because there can be no development without territorial cohesion.

One of the issues frequently discussed in the General Courts early on was the risk that these funds would end up benefiting primarily our country's large corporations. Well, around 43 per cent of the funds have gone to small and medium-sized enterprises in our country, as well as to the self-employed - amounting to around 30 billion euros. I have said this before, and I will say it again: I believe that these funds have been linked to the greatest drive for reform that our country has seen in decades. And that is why I believe it is a source of pride - and, moreover, for a progressive coalition government with a parliamentary minority, it is a source of pride - to announce that Spain has already implemented no less than nine out of ten of the reforms agreed with the European Commission. Nine out of ten. Not only was it a condition for receiving the money, but it was also an indispensable catalyst for the structural change I mentioned earlier, which is now becoming an undeniable reality even for those who did not believe in it.

This has been our plan. Structural reforms and a strategic vision, whilst at the same time providing an urgent response to many of the crises that have arisen over the last few years. A national project that I believe is here to stay. One that must endure and continue beyond the Next Generation funds - thanks to the sovereign wealth fund we are establishing (which will utilise loans and some transfers from the Next Generation funds). We have named this fund "España Crece" (Spain Grows), and it involves an unprecedented mobilisation of public resources intended to leverage private investment as well.

So, recovery and transformation. And the final key pillar - the ultimate goal - of this recovery and transformation plan is resilience. This concept we call resilience. I also believe that the events of recent months - and indeed of recent years - have proved us right, because we were correct, for example, Madam Vice-President, in committing to the ecological transition and the green transition. This has been highlighted by international organisations and the most prestigious think tanks in their analysis of the consequences of the war in Iran. Indeed, debates at the European level consistently highlight the importance of the commitment the Government of Spain has maintained for the past eight years - a commitment that leaves us better prepared to withstand these energy shocks. Today, electricity costs half as much here as it does in Germany. I recall that before 2018, conversations with small and medium-sized business owners always touched upon the fact that, among the various costs they faced, the primary burden was energy - specifically the cost of electricity. Well, today our electricity is half the price of Germany's and nearly three times cheaper than Italy's We have turned a chronic weakness - a drag on our competitiveness, namely energy prices - into a driver of competitiveness for our companies. And we must continue along that path. Let us consider the difference. During the pandemic crisis, we were the European economy that suffered the sharpest decline. As I mentioned earlier, our Gross Domestic Product fell by 20%. This has happened to us not just once, but whenever there have been severe crises, such as the financial crisis; Spain has consistently been among the economies that contracted the most as a result of such crises. In the current crisis, however, we are the ones standing out. We are the ones standing out. Four COVID variants, then. Two wars, one of them on Europe's doorstep. A trade dispute. Two inflationary spirals later… The number of social security contributors has reached 22.5 million, and real household income has risen by 8.4 per cent - so, we are talking about income adjusted for inflation - poverty and inequality are at historic lows, and the Ibex 35 has tripled in value, smashing all previous records.

Spain is therefore no longer wavering. Spain is the safest bet. No other economy in the world has managed to build such a level of protection and resilience against uncertainty in just six years. And every time circumstances have put us to the test, we have given it our all. In recent months - including during this war we do not condone - we have protected our productive sector and Spanish families; we rolled out a €5 billion aid package over a single quarter to counter the impact of an illegal war that has brought nothing but ruin and death. We hope the war has finally ended - we cannot be certain, but let us hope it is over - though we know its effects will linger for months. And that is why, next Monday, we will renew that social safety net through the Council of Ministers' approval of a new Royal Decree-Law. And so, as I said three months ago, as I am saying today, and as we will also say next Monday at the meeting of the Council of Ministers, no family, no business, no self-employed person - no one - will be left unprotected from the effects of the war in Iran. For as long as it takes, we will deploy the Spanish State's resources to protect our homes, our productive sector, our industry - in short, our country's economy. At this point, I would like to take the opportunity to call upon the parliamentary and political groups to rise to the occasion and serve the country. I therefore ask you to support this Royal Decree-Law when it comes before the Spanish Parliament.

I will conclude. A few days ago, Goldman Sachs highlighted the qualitative leap made by the Spanish economy in recent years. I don't think we're talking about a communist or socialist approach to the economic reality of our country and the world. Goldman Sachs. The qualitative leap of the Spanish economy in recent years. Because we are not only growing more - which, of course, we are - but we are growing better: with productivity gains, a firm commitment to innovation and a solid position in sectors that will shape the future of the economy. Our capital espending has finally returned to pre-Great Recession levels - a significant milestone. We are talking about a period spanning from the start of the Great Recession in 2008 to the present year, 2026. In fact, this year, that figure will surpass those of the Eurozone, the United States and the United Kingdom as a percentage of Gross Domestic Product.

None of this would have been possible without the impetus provided by the Next Generation funds. One of the best ideas the European Union has ever launched in its 70-year history. I believe this is the way forward for Spain and, of course, for Europe as well. And we must not stray from it. I began these remarks by recalling the consequences of that painful divorce known as Brexit. Today, a major press outlet reports that the United Kingdom is estimated to have lost 8% of its Gross Domestic Product as a result of leaving the European Union. Well, that's what happened. I believe we must learn from our mistakes - and even more so from our successes - in order to build a Europe that will never cease to inspire and attract. A Europe capable, of course, of stepping up when times are tough, of protecting us from those who seek to subjugate - or at least weaken - us, and of spearheading the major transformations we need to keep moving forward. That is the great legacy of the Recovery, Transformation and Resilience Plan, both for Spain and, through Spain, for Europe. That is the legacy of the Next Generation funds. An example of pro-Europeanism - of a pro-European patriotism - that helped, in a way, to re-legitimise and give renewed meaning to this great shared project known as the European Union. That's all. Thank you very much.

(Transcript edited by the State Secretariat for Communication)

Original speech in Spanish

Non official translation