President of the Government says he has no intention of raising VAT or extending retirement age

During the government control session in the Lower House of Parliament, Mariano Rajoy welcomed the fact that the European Commission has changed its recommendation for Spain in terms of compliance with its obligations under the framework of the excessive deficit procedure. Because of that, "Spain will not need to achieve a deficit of less than 3% until 2016, we have been given two more years and a greater margin for the years 2013, 2014 and 2015", he said.

In response to a question on this issue from the Member of Parliament for CiU, Josep Antoni Duran i Lleida, the President of the Government added that the European Commission is recommending that Spain improve its structural balance over these years but "is not asking us for any additional measures this year". He stressed that this "is what we had asked for in our Stability Programme" and therefore "it represents support for what we are doing".

As regards certain specific issues tackled in the recommendations from the European Commission for Spain, Mariano Rajoy recalled that Spain is not being encouraged to make changes to VAT and added that "the Government of Spain has no intention" of raising this tax. On the issue of pensions, he stressed that "the government's priority is to guarantee the pension system for the future, ensure the sustainability of our model. We are not going to extend the retirement age beyond what has already been done and, provided we are able and as we have done in our two previous budgets, we will continue to raise pensions". Finally, as regards the issue of financing for SMEs, he insisted that Spain will encourage the European Investment Bank's involvement in this area.

When asked by Alfredo Pérez Rubalcaba, of the Socialist Group, about the results expected by the government from the European Summit to be held at the end of June, the President of the Government highlighted the need to continue talking about growth, jobs and integration and, regarding the latter, particularly about banking union.

He said that many countries and parties with different views agree on the objectives that need to be sought at this meeting, although he highlighted among them the need for the EU to send a message saying "that Europe is still moving forward and correcting its design problems, and that it is tackling the problems that really affect its people". In his opinion, youth employment and re-establishing the flow of credit to SMEs are the most pressing issues.

Mariano Rajoy also answered a question from the Member of Parliament for the Mixed Group, Enrique Álvarez Sostres, on the State's response to the principle of equality among all Spaniards. The President of the Government reaffirmed his commitment to this principle and highlighted the instruments to guarantee it: the Social Security system, unemployment benefits, the regional financing model and the structural efforts by the government in terms of infrastructure and investment.