RajoyPrime Minister Mariano Rajoy looked back over his first year in office and said “We must persevere in the reforms we have undertaken” and added that we need “comprehension and solidarity” from all our citizens. He further commented that we need to follow these lines order to overcome the economic situation.
Senor Rajoy explained that to offset the imbalance in the current public accounts it was necessary right from the start, to adopt extraordinary measures that were painful but fair, in order to reduce the deficit. He believes that as a result of approving the Budgetary Stability and Financial Sustainability Act, the foundations have been laid for avoiding a similar occurrence in the future.

Senor Rajoy stressed that to lay the foundations for stable and sustainable growth of our economy for the future is paramount. He said that if these reforms had not been taken, then Spain and its people would now be in a considerably worse situation.

“We still have a very tough year ahead of us, particularly in the first half, but we do expect to see an improvement in the second half of 2013″. He praised Spanish society for the way in which it is facing up to the problem, particularly acknowledging the sacrifices made by civil servants and pensioners.

More recently, Senor Rajoy explained that government reforms had avoided the weekend’s €100 billion loan to save its ailing banks from being seen as a bailout for the country. He added that without the changes introduced by the government, the decision for the loan would have been an intervention instead of what should be recognised as the opening of a credit line. He further explained that if we had not done what we have done in the past five months the recent proposal would have been seen as a bailout of the Kingdom of Spain.

The Prime Minister said of the loan deal: “Yesterday, the credibility of the euro won, yesterday the future won, yesterday the European Union won”. He was positive in the fact that it was he who had pressed for this line of credit, insisting it was different from the bailouts taken by Greece, Ireland and Portugal. Because their lifelines included strict outside control over public finances and Spain does not face these restrictions.

In tandem with the Prime Minister’s comments, the Secretary of State for Employment stated that during December there was a marked decrease in unemployment including Andalucia. He also added that in the last six months, unemployment had performed better than in 2011.

All in all, these recent developments enacted by Spain appears to have given confidence to the markets in general and to its neighbours. There now needs to be a continuing hard effort by everybody to ensure that the country rises from its problems.

 

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