28 May 2013

Rajoy: "We have achieved our goals to a great extent"

At the conclusion of the European Council, the President of the Spanish Government said Spain had insisted on the Council taking decisions "with a real impact on three key issues: unemployment, particularly of our young people, the financing of SMEs and banking union".

The government is convinced that "Europe is an institution made by and for the people and a project that should address the real and tangible interests of society". In this respect, Rajoy expressed his satisfaction at the agreements adopted at this Council because he had seen "a desire to make progress on European integration in terms of banking, fiscal, economic and political union" and because those issues that concern the majority of Spanish people have been tackled, such as unemployment and credit for SMEs, "rather than only speaking about the public deficit", he said.

According to Mariano Rajoy, the main bottleneck to growth in Spain is the lack of credit, particularly for SMEs as a result of the fragmentation of European markets. This is why it is very important to act at an EU-wide level and one of the results of this Council, he explained, is the consensus on the need to revitalise credit for SMEs. The proposals made by Spain regarding the European Investment Bank (EIB) increasing its commitment in this respect are reflected in the conclusions.

Among the proposals, he cited the refocused policy of granting loans from the EIB, the full utilisation of the recent €10 billion capital increase of the institution, together with the increase in its credit activity plan in the EU by 40 per cent between 2013 and 2015. As regards SMEs, the President of the Government also reported that agreement was reached on the application of the structural funds and major programmes aimed at fostering competitiveness and innovation such as Cosme and Horizonte 2000. The Council also adopted a new investment plan for Europe designed to reactivate credit to finance investment.

The President of the Government highlighted in his speech that banking union "is now focused, it will be implemented and I believe that by the end of the year the legislative framework will be approved".

Referring to the previously approved European supervisory mechanism, he said that progress has been made on approving the directive on the bailout and resolution of institutions and on the full guarantee for all deposits for individuals of less than €100,000.

Similarly, significant progress had been made on such a "key" area as banking union, stressed the President of the Government, who considers that the presence of a single European supervisor and a level playing field for all EU Member States "will result in greater certainty and stability, availability of credit for all, and most importantly at similar prices".

Full press release

© La Moncloa - Government of Spain