At Davos, Spain's Prime Minister Pedro Sánchez articulated his vision for a unified Europe, highlighting his country's economic resilience and commitment to democracy and environmental sustainability. He also stressed support for Ukraine and advocated for a federal European Union.
ADVERTISEMENTPedro Sánchez, Spain's Prime Minister, recently delivered a pivotal speech at the Davos World Economic Forum, highlighting Spain's commitment to a unified, resilient Europe, championing environmental and social well-being.
Here's a roundup of his most important economic points.
Spain's stance on global challenges
Sánchez began his address with a stark reminder: "The future stability of the world is being decided in Ukraine and Gaza while we speak."
He emphasised Spain's commitment to the rules-based international order, a sentiment echoing the nation's deep-rooted values in democracy, openness, and tolerance.
"Spain is a full democracy that defends the European project, but also the globalist dream that inspired the creation of the UN and the Bretton Woods institutions," Sánchez said.
Advocating for economic openness and international solidarity, Sánchez offered unwavering support for Ukraine against Russian President Vladimir Putin's aggression and called for a resolution to the Israel-Palestine conflict, reaffirming his country's commitment to global peace and stability.
He envisioned a more integrated European Union, emphasising the inclusion of the Western Balkans, Ukraine, and Moldova in a federal Europe.
Spain's economic resilience and prosperity
Post-re-election and during Spain's EU Presidency, Sánchez highlighted achievements including the electricity market agreement, the Critical Raw Materials Act, and the Artificial Intelligence Act.
He recognised the potential of AI and emerging technologies in addressing global challenges, saying, "I'm sure that the AI and other candidate technologies are the best option we have to overcome challenges such as ageing, the environmental crisis, the spread of diseases or low productivity."
However, he also cautioned against overlooking the threats posed by digitalisation, advocating for governance that prioritises citizens' rights over corporate interests.
Proudly reflecting on Spain's economic resilience, Sánchez noted robust growth, job creation in technology sectors, and significant improvements in labour rights and poverty reduction, alongside a 54% hike in the minimum wage.
Sánchez said that under his leadership, Spain has created over two million jobs, particularly in high-value sectors like technology. He claimed that Spain's economic growth demonstrates that economic competitiveness and citizens' prosperity can coexist.
All-in on renewables investments
Sánchez underscored Spain's commitment to environmental sustainability. "In five years we have cut our consumption of natural resources by 7%, reduced our emission by 10 points, and increased our renewable energy production by 34%," he stated.
In 2023, Spain achieved the milestone of generating half its electricity from renewable sources, leading major EU economies in this domain.
These environmental advances have spurred new industries, job creation, and competitive energy prices, disproving the notion that environmental progress impedes economic competitiveness.
Sánchez acknowledged the private sector's vital role in growth and well-being, urging companies to contribute to societal challenges like climate change, workers' purchasing power, and defending democracy.
A critique on neoliberal policies
Sánchez subtly countered Argentine President Javier Milei's libertarian views expressed in Davos.
The newly elected president criticised state intervention and emphatically urged entrepreneurs not to yield to what he perceives as the excessive and coercive power exerted by the state, particularly in the context of taxation.
ADVERTISEMENT"Spaniards know that neoliberal policies do not work," advocating for a stronger role of the state in ensuring economic and social welfare.
"Do not buy the only liberal postulates that portray the state as a poorly extractive entity,” Sánchez added.
He emphasised that wealth creation depends on the pillars of democracy, international order, and a welfare state, warning against purely liberal postulates.
Without these pillars, "business models' would collapse like a House of Cards," Sánchez warned.
He advocated for a balanced approach where the state and private sector collaborate for collective prosperity.
ADVERTISEMENT"For those companies that want to get rich by generating real value and paying their fair share of taxes, we welcome these companies with open arms," Sánchez claimed.
