SPAIN has announced a €14.1billion plan to offset the ‘damage’ caused by Donald Trump’s ‘trade war’.
Prime Minister Pedro Sanchez held a press conference on Thursday after it emerged the US will be implementing 20% tariffs on the country’s imports, in addition to a ‘baseline’ 10% tariff on all foreign imports.
The potentially devastating move comes just as Spain is emerging as an economic powerhouse in the EU following years of steady growth – while its closest neighbours have floundered in comparison.
The EU, and by extension Spain, was named among Trump’s list of ‘worst offenders’ for ‘ripping off America’ yesterday evening.
Sanchez spent the majority of Wednesday meeting with ministers, business leaders and trade unions in a bid to come up with a contingency plan.
He today revealed he would be spending €14.1bn on a series of programmes designed to ‘protect the middle class, businesses and self-employed workers.’
Speaking this morning he said: ‘I don’t intend to sugarcoat the situation. The situation is complex. The war started by Trump is bad news for the world, for Europe, and for Spain.
‘No one will be immune to these impacts, but this doesn’t mean we will stop growing. Doomsayers have been talking about the end of our prosperity for years. They were wrong in the past, and they will be wrong now.
‘Spain is a robust economy that attracts companies like never before, with social peace and that influences European debates.’
He added: ‘In seven years, I’ve faced very difficult things: the pandemic, the war in Ukraine, climate emergencies… and now this.
‘But we will face it with team spirit, with a commitment to dialogue, without impositions. Thanks to the regional governments that are lending a hand, to the social partners, to the Council of Ministers.
‘We will protect the middle class, our businesses, and the self-employed with all the resources available to us. Despite the difficulties, the results are visible: we’ve controlled inflation, lowered unemployment, and opened up to the world like never before…
‘Spain is a safe bet in the eyes of the markets and citizens around the world. We will overcome all of this without abandoning our values. Our values are not for sale, but our products and services are.’
Sanchez said his plan to combat Trump’s tariffs will be separated into ‘two pillars’.
The first will ‘assist and protect the businesses and jobs affected by Trump’s tariffs’.
Among the packages are a €6billion line of finance managed by the publicly-owned ICO (Instituto de Credito Oficial) and a €200m support fund to provide loans to modernise or install new production plants.
Meanwhile €400m has been set aside to help the country’s MOVES plan, which gives car manufacturers incentives to create electric vehicles.
In the ‘second pillar’ is a €5billion ‘Recovery Plan’, including ‘€500m for the internationalisation of small and medium size businesses’ and a ‘€2billion in credit insurance and export risk coverage’.
Sectors will also receive government assistance to help ‘strengthen their position in the United States and access new markets.’
