Spanish president Mariano Rajoy gave assurances on June 2 that his country’s economy is on the mend, despite reports of the flight of millions of euros. The Iberian leader said, “We are not on the edge of a precipice; we are not on the eve of the Apocalypse. The storm has not yet ended, but we will not sink”. Nevertheless, Rajoy added that Spain will have to rely on “its own efforts and on the support of our Community partners”. To fix the country’s dire economic problems, Spain will need to “reinforce it common institutional framework”, and progress towards European integration while conceding its economic sovereignty, said Rajoy.
Speaking at the 28th meeting of the Spanish Economics Circle on May 31 in Sitges, Catalonia, Rajoy admitted that both Spain and Europe are in the midst of a situation that is “neither easy or simple” to resolve. Rajoy said that Europe’s problems are sever, just as their “reverberations, alarms and dire prophecies”. He warned against those who kindle fears about the economy, and expressed an assurance that “Spain is a very solid country”. It remains the fifth largest economy in the European Union and the fourth largest in Europe’s monetary union or Eurozone, adding “While with regard to per capita income, it is the fourth in the Eurozone”.
Expressing a bullish attitude about Spain, Rajoy said that his aplomb “does not signifinify an oversight, nor indifference or carelessness. Continuing with a nautical theme, “Spain and the Monetary Union, with or without fanfare, will pass through this storm and leave the crisis in their wake”.
Rajoy opined that Spain and other countries on Europe’s periphery have been negatively affected by EU fiscal policies at the onset of the crisis. He offered that it is essential to “maintain the budgetary equilibrium and reform our economies. My government’s commitment to these goals is beyond dispute”. President Rajoy, who leads the Popular Party of Spain, is basing his actions along five paths: budgetary stability, economic reforms that will improve competition; structural reforms of the EU; resolving the problem of financing and liquidity; and consolidate European integration so as to eliminate second-givings.
Rajoy said that reducing the deficit is an essential rule that the entire Eurozone must follow. It was thus that there was an adjustment of 15 billion euros that was approved in December 2011, followed by a correction in the deficit in the General Budgets for 2012. He noted the budget cuts made in Spain’s various regions. All of these have meant an adjustment of 18,349 billion euros. He calculated that the combined debt for Spain will dip below 60% by 2020.