Carlos Body: “We need more projects like the EU-Mercosur agreement” | Economy | EUROtoday

Carlos Body has given a contact of non-conformity to the second day of the XXVI Spain Investors Day Forum. The Minister of Economy began his look by mentioning a verse from the enduring tune The Times They Are A-Changin by Bob Dylan to explain how Spain is efficiently browsing a world that’s altering quickly. “We are building a balanced model that allows us to grow more than our main partners,” he mentioned earlier than an viewers filled with buyers and businessmen on the Four Seasons Hotel within the heart of Madrid, whom he inspired to decide on Spain for his or her tasks. “Allow me to be provocative and send a message of optimism,” he added: “My message is clear: Spain is the place to be.”

The head of Economy has reported that since his first intervention on the discussion board, three years in the past, the world has taken a radical flip and it’s extra complicated for each rulers and buyers to know “how to grow and bring prosperity.” Now there may be extra uncertainty, Europe is questioned, political challenges are on the rise. What is obvious is that the roadmap have to be guided by European values. “We need more projects like the EU-Mercosur agreement,” he defended in a plea in favor of the normal international order, now shaken by the expansionist and imperialist pretensions of the world’s essential economic system.

“It is not only about trade, but about economic security,” mentioned Corps in relation to the treaty between the EU and a bloc made up of Brazil, Argentina, Uruguay and Paraguay, an settlement that’s nearer after 25 years of negotiations and that can give rise to the most important free commerce space on the earth. It will open “opportunities for companies and citizens,” he mentioned, whereas insisting that extra Europe is required and that its rules be valued. “We have to show everyone what it means to be European,” he urged.

The head of Economy has taken the chance to recollect how on this complicated context, Spain has based mostly its post-covid restoration on dynamism, stability and an “exceptional adaptation” to the shocks. “We have returned to the trend [de crecimiento] pre-covid, but more sustainable”, defended Body. The intense job creation, the increase in productivity per hour, higher than that of other periods, the surplus in the current account balance or the strength of exports of non-tourist services are some of the variables that he has listed to describe the differential growth that the country is experiencing.

Body has predicted a reduction of up to 100% of GDP in the debt ratio already at the end of 2025 – the official data will be published in March -, “rebuilding the cushion” that allowed us to face the crisis. He has also stated that growth has a clear objective, to reduce inequality, to then list some of the “numbers” that go in this direction: GDP per capita has grown by 8% since 2022, the unemployment rate is 15 points below that recorded during the worst of the Great Recession.

Furthermore, the minister stressed that the Government is modernizing and is “transforming great challenges into opportunities.” This is the case of local weather change and reindustrialization, since Spain “is a champion in the development of renewables”; the ecosystem of start-ups (rising corporations) has doubled and job creation in high-level added sectors is rather more intense than the overall price.

“The Spanish development mannequin works. It is a balanced and inexperienced mannequin, which is dedicated to sustainability; it’s a fashionable mannequin, which is dedicated to innovation; it’s a truthful mannequin, which reinforces the Welfare State; and it’s a aggressive market, the place corporations can develop,” they have defended, without hiding that there are also challenges.

The first challenge mentioned by Body is housing, which has become a bottleneck and one of society’s main concerns. “Here I want to emphasize that the Government’s commitment is clear: to work hard,” he said, while acknowledging that there are no magic solutions to fix the problem. Body has assured that the issue is being addressed from different fronts, from investment to regulatory measures and coverage of market failures.

The different large problem is productiveness. “A large part of our roadmap goes in that direction,” mentioned the minister, based mostly on 4 pillars: simplification, innovation, financing and internationalization, with the purpose of gaining competitiveness, persevering with to construct investor confidence and attracting certified work. “It’s time for us to swim [es tiempo para nosotros de nadar]as Bob Dylan would say,” he summarized.