Despite the electoral lead, Pedro Sanchez will take over the presidency of the Council of the European Union this weekend. From July to December, Spain. In this context, DIRIGENTES interviews Ramón González Bernal, Director of ATREVIA, a communications agency specializing in strategic consulting in Brussels.
What is the image of Spain in Europe? How does it affect the economy?
The picture is reasonably positive, and I think there is a role that, from a diplomatic point of view, has been developing well for years. It is true that there have been stages of greater or lesser leadership in the negotiations on the board of directors, depending on the different executives. Another reason is that economic indicators, after the severe blow to the economy from Covid-19, do not show us, for example, how inflation has been affected. There is a positive perception of Spain’s recent performance and this in favor of the leadership the country can see in the face of the presidency that begins nowregardless of electoral progress.
Do good macroeconomic data boost Spain’s position in Europe?
I think he should. It is true that there is now a very relevant debate about financial rules, but behavior from an economic and financial point of view has an impact on the ability to influence society’s policies and to participate in discussions of real importance. It’s not the only thing that affects, but it does so in an appropriate way.
Face rotating chair how can it be used from a commercial point of view?
There are many issues that fall under the Spanish presidency, even if they are not closed, in the economic and financial fields. A member state with a presidency of the Council of the European Union has two functions: to oversee debates on various matters, and another to lead, which gives it the power to bring issues to the EU’s regulatory agenda.
This must be taken into account Spain closes the legislative cycle, because there are elections on June 9, 2024 and the next presidency, the Belgian, which does not have a full cycle, will not be able to conclude many agreements.
From an economic point of view, on the one hand, a multi-year financial framework. The performance of the framework is being evaluated. The next six months will be under discussion and Spain, with the presidency, will have the power to lead the discussion.
Other related issues are an opportunity for Spain to establish a position, such as State Aid, where there is a debate about how flexible the Commission should be when allowing states to provide aid to certain sectors. Because now Almost 50% of the aid was provided by Germany, 20% by France and 10% by Italy. That is, those who have a greater ability to finance or support certain sectors.
There is also the issue of tax reforms, where Spain had a strong position, having signed a letter with the Netherlands, a country that was not traditionally on our issues. There is a proposal by the European Commission to go beyond or maintain the current limits – 3% deficit and 60% debt – since 1992 and adjust them to current realities. There is a tougher position for Germany, which does not want concerns and seems to want a proposal to reduce debt by 1% annually when the European Commission and Spain defend that it is a reform more adapted to the specificities of each member state.
Another issue I would like to mention is environmental taxes. Spain wants to open the debate on issues related to tax on plastic, kerosene or carbon taxes at the border. There we know that Spain wants to lead.
And also to propose a corporate tax at the community level, so that multinational companies pay a minimum of 30%, which Spain is defending. In short, all the issues that characterize the European agenda or that Spain wants to promote.
It is not just about the fact that Spain is leading the debate or putting initiatives on the agenda. During the six months, some summits are held in Spain and Brussels around the Spanish Presidency of the Council and also Numerous parallel events that companies can take advantage of to position themselves from a corporate and commercial point of viewand gain greater insight to establish new business relationships.
What are the priority challenges that Spain should promote?
The main challenge for Spain is to reform the fiscal rules. This is where you have to pay. Spain agrees to the proposal put forward, which is very much in line with the proposal of the commission, in contrast to the position of Germany, which advocates something similar to what had existed before. There has been talk of penalties in case of non-compliance, as Brussels wants to make sure the targets are met. Regardless of the final agreement, Spain should try to promote a common position that is beneficial to it.
Environmental issues are also interesting, where Spain can take the lead. I think the ability to influence negotiations, seen in reforms or various initiatives to regulate renewable energy, is where Spain should focus.
There are other VAT directives, as there is a digital VAT package that will be discussed and the current VAT directive will be amended, which aims to create a dispute settlement mechanism. Spain is also interested in introducing a cooperation agreement with the United Kingdom on the issue of Gibraltar.
How does the position of the executive branch usually differ in the priorities that are defended?
It will affect by topic. In the end, what can happen with electoral progress is a loss of focus for the presidency, beyond partisan use in the election campaign. We will be more focused on domestic political issues. In September, if the executive branch is changed, there may be problems as there is a change in attitude. On issues such as tax rules, there is more consensus, but, for example, Spain has a strong place in the platform workers directive, which is very similar to the Ryder Act, but with a much broader scope of application. If the government changes, I think there will be a very different attitude on the part of Spain or less intention to close this issue during the term of the presidency.
It is necessary to measure the influence of the rotating presidency of the Council, despite the fact that this institution has more weight than it did a few years ago in decision-making. Everything starts from the Commission’s proposal and then they legislate, both the Parliament and the Council. The scope is limited, which does not mean that Spain will have the power to impose a position or put all issues up for debate as it wants. There is the task of moderation and leading the debate.
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