The Council of Ministers has given the green light on Tuesday to Royal Decree with the measures announced last week by the President of the Government, Pedro Sánchez, to deal with the tariffs announced by the president of the United States, Donald Trump, who have already caused a earthquake in the markets around the world and that threatens very specific sectors of the Spanish economy. According to the Executive figures, the plan reaches the figure of 14,100 million euros in aid, of which 7,400 will be of new financing and 6,700 of existing instruments.
“We want to send a message of trust, unity and cold head when acting. The relationship with the United States is a relationship to protect, improve if possible. And we are putting all our efforts, holding out to the American administration to seek an agreed exit,” said the Minister of Economy, Carlos Body, at a press conference after the Council of Ministers.
Carlos body has notified, however, that the government “cannot be naif” and that it has the necessary instruments to protect the interests of Spanish citizens and the European Union. ” The minister has defined as “unjustified and arbitrary” Trump’s tariff policies that, in his opinion, have caused “the greatest commercial shock in history, or at least the last hundred years.”
As explained by the Minister of Economy, collapses in the bags of recent days are the first proof of the error involved in protectionism. “Therefore, we launched a reaction message. Being the first country that has put a protection network for sectors, companies and workers affected” by the commercial war.
Officially, the Commercial Response and Rejoice Plan seeks to “offer a security network and boost the industrial transformation and internationalization of our companies.” This shield has three axes.
The first axis is “a protection network.” With an ICO line of guarantees, 5,000 million, which is activated “to flow the credit through financial entities” to the sectors affected by the commercial war. This first part adds a financing line, for 1,000 million, the renewal of the Moves III Plan for 400 million, the creation of the Productive Industrial Investment Fund for 200 million and the network mechanism.
The second active axis “financial instruments to support internationalization for 720 million”. In addition, it designs coverage of 2,000 million through the CESCE and CARI institutions. Finally, displays the Internationalization ICEX plan with funds from the recovery plan (5,000 million).
The third axis is “the EU dimension”, with the tariff response, of which some details were known on Monday. The impulse of a new European fund, financed with the tariffs themselves. And, for the other hand, the Minister of Economy has influenced the support of commercial negotiations to strengthen new markets, “with priority in Mercosur, China or Indial, and, at the same time, to boost the domestic market.
The president of the Government visits this week China and Vietnam to expand the markets from our exports, and save the tariffs of the United States. It is the third visit in three years of Pedro Sánchez to the second world potential and the first official trip of Spain to the country of Southeast Asia.
With both, Spain has an important commercial deficit (we buy much more than we sell them) and the government seeks to balance this situation in a context of total commercial war in which the world board is being readjusted to forced marches. Sánchez’s visits are bilateral but coordinated with the European Commission.
Source: www.eldiario.es
