13 May 2013

26th Spain-Portugal Summit: "The challenge is banking union, credit for SMEs and jobs for young people", says Mariano Rajoy

At a joint press conference, the President of the Spanish Government explained that the meeting had focused on the agenda of reforms and fiscal consolidation the two countries are implementing in order to return to the path of growth and job creation.

Rajoy believes it essential that the European Union adopts measures to accompany national efforts aimed at speeding up their positive effects. In this regard, he said that the schedule agreed by the European Council on banking union must be followed. "Banking union is the EU credibility test. Adopting measures to ensure credit reaches families and SMEs and to tackle the serious youth unemployment problem is a pressing issue at both a Europe-wide and Member State level", he said. In his opinion, banking union can only bring advantages. "There is no doubt in my mind about banking union or about everyone's desire to achieve it. None of the 27 Member States has a different opinion."

As regards employment issues, the President of the Government stressed that any initiative in support of jobs for young people will receive his support. He recalled that the Financial Perspectives for the period 2014-2020 contain a heading of €6 billion for the promotion of jobs for young people. Mariano Rajoy also announced that the Governments of Spain and Portugal will intensify efforts to ensure the European Union adopts new measures over the coming months. "Being able to soon deploy the youth unemployment fund, the new cohesion funds and the funds aimed at the Common Agricultural Policy is a priority."

Furthermore, the President of the Government said he is very pleased with the progress achieved by the labour reform approved in Spain and has no intention of changing it because it has been "highly positive, has increased flexibility in the economy and has enhanced our competitiveness".

As regards SMEs, he mentioned the aid from the European Investment Bank and the announcement from the President of the European Central Bank, Mario Draghi, regarding support for this initiative.

Mariano Rajoy stressed his agreement with Pedro Passos Coelho regarding the fact that the European Union "can and must do more" to demonstrate the same effort as its Member States on ensuring the stability of the Eurozone. "There is no time to lose. The next few months will be very important for consolidating positions and joining forces", he added.

He believes that the crisis has revealed flaws in the design of the single currency and doubts over its viability, meaning that Member States must send out a very clear message: "The euro will not fail; Member States will emerge stronger from this crisis and Europe will remain our framework of well-being and shared prosperity".

Press release

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