Brussels, 30/01/2012 (Agence Europe) - The problems facing the Spanish economy, measures Spain is planning to take to deal with its budget and economic challenges and the new Spanish government's economic strategy were all discussed during the meeting between the new Spanish prime minister, Mariano Rajoy, and the president of the European Commission, José Manuel Barroso, in Brussels on Monday 30 January ahead of the EU27 Summit on dealing with the economic crisis and boosting growth and jobs.
Rajoy said that under his leadership, Spain would be a faithful ally of the EU institutions and the European Commission, and would be a reliable, committed participant in European debate. He said he had confidence in the prospects for the euro and backed measures to boost jobs and growth, particularly jobs for young people, that were to be discussed by the heads of state later that day. Rajoy said that he would be promoting measures for small business. Spanish economic policy under his government would take a four-pronged approach, he said, namely cuts in public spending and reducing the public debt; structural reforms to make the economy more competitive, such as a draft reform of the labour market, to be unveiled in February and comprising wage restraint over the next few years, irrespective of inflation levels; ensuring sufficient cash flow in the banking system to fund the real economy; and Spanish backing for the aims of the new budget pact and the EMS (two issues to be addressed by the EU27 heads of state).
Commenting on the budget consolidation measures, Rajoy said his government was awaiting the publication by the European Commission of its economic forecasts on 23 February before unveiling a macroeconomic assessment of the Spanish economy, limits on public spending and a detailed timetable of spending cuts. He said that Spain was ahead of the game in terms of the measures the EU27 are preparing to introduce, having introduced measures on Friday 27 January, with more due in the next few days. Barroso said he was awaiting the Spanish work programme and the country should introduce measures to reduce its deficit without penalising growth. In this connection, he said that the deficit-correction measures decided upon on 30 December 2011, equivalent to 1.4% of GDP, were crucial. Commenting on future measures to stimulate growth and jobs in the EU, Barroso explained that the Commission would soon be unveiling measures to deal with youth unemployment and the shortage of finance for small business, two of the weaknesses of the Spanish economy. (FG/transl.fl)
by Ferdinando Riccardi