The minister of Economy, Industry and Competitiveness, Luis de Guindos, and the director general of the European Stability Mechanism (MEDE), Klaus Regling, held a very constructive meeting in Madrid today, within the contacts that the director general of the MEDE carries out regularly with the Member States. The meeting discussed the economic situation in Spain, the activity of the ESM and the future of the Economic and Monetary Union.
Spain is a fundamental member of the ESM. Its participation in the fund is the fourth most important (11.82% of the MEDE's capital, which amounts to 80.4 billion euros) and also plays a very important role in the future of the eurozone and its institutions. The ESM is also a creditor of Spain.
The recovery of Spain is a success in the history of the recent crisis. In the more than four years since requesting a financial aid program to recapitalize the banking sector, Spain has experienced robust growth (well above the average in the euro area) with continuous improvement in the labor market and falling unemployment and a fully healthy banking sector.
There are still challenges and the Spanish Government is committed to fiscal consolidation and the application of structural reforms to maintain growth.
To underline this good performance, Spain has made voluntary advance payments to reduce its debt with the ESM, which now stands at 34.7 billion euros. Spain has offered to return this year up to an additional 3,000 million euros, a request that will be valued by the governing bodies of the MEDE. This shows the good conditions of access to the Spanish market and its comfortable liquidity position.
For the euro area, the case of Spain shows how effective the ESM instruments have been in dealing with the recent crisis. It recapitalized the banking system and supported a rapid restructuring of the financial sector that, together with the broad reform agenda implemented in parallel by the Spanish government, made Spain one of the fastest growing economies. The ESM believes that this example should continue to inspire eurozone countries where reforms sustain the current growth trend and provide lasting prosperity for European citizens.
Looking ahead, both Spain and the ESM remain committed to working together to promote sound economic policies, complete the Banking Union and deepen the construction of the Economic and Monetary Union; All of this is essential for the resilience of the euro area.
Minister De Guindos congratulated the Director General, Klaus Regling, for the renewal of his mandate and the good work of the past years.