 Prime Minister Sanchez Welcome back to Davos and Congratulations on your reelection I would like to start Off by thanking you for your friendship and commitment. This is your fifth time in Davos Physically, and then you even joined us when we had to do it virtually. So thank you very much for that and Also would like to underline that you just Concluded a very successful and eventful Presidency of the European Union achieving some key milestones Such as an agreement of the electricity market the critical raw materials act and artificial intelligence act to mention a few and of course Most important was the start of the accession Negotiations with Ukraine and Moldova that took place under the Spanish presidency Agreements has also led the robust economic performance despite global turbulence That is also a major achievement so Prime Minister I Invite you again to share with us your vision for Europe and for Spain and Your country's role in Europe and in the world so welcome So, thank you very much work and thanks dear friends So I will start with an exercise Stating like imagine for a moment that that we are in the year 2030 in The 60th edition of this forum Imagine that that the world has failed To achieve the sustainable development goals and the goals of the Paris Agreement Imagine that the planet's temperature has Rission for more more than 1.5 degrees causing the degradation of our ecosystems and That our GDP has fallen by 15 points Imagine that fake news and political pluralization have reduced the number of democracies That the advance of Digitalization and artificial intelligence intelligence has not properly governed and has increased Inequality and expelled millions of people from the labor market Imagine this scenario and tell me would it be good for your business More importantly, would it be good for your children for your grandchildren for your friends for your fellow citizens? Because the future I'm describing to you is not a dystopia It is a possible future A likely projection of the world we will end up having if we let Ourselves be carried away by inertia or resignation These stakes are high 76 countries more than half of the world's population will hold elections this year and Crucial political decisions will have to be made regarding some of the main Societal dilemmas we face So here I would like to refer to three of them that I consider particularly timely The first concerns the very survival of the rules based international order That has brought us so much prosperity since the end of the World War two Spain is a full democracy It is an open modern and tolerant country that defends the European project But also the globalist dream that inspired the creation of the UN and the Bretton Woods institutions That is why we are committed to economic openness to international solidarity and to the multilateral system a system that is threatened by Those who promote fragmentation intimidation or the use of force to impose their interest and will it is happening in Ukraine a country that is fighting for its freedom against Putin's authoritarianism and Where millions of people have been displaced From their homes and let me be clear we support Ukraine and we welcome their recent Announcement of future peace summit that upholds the principles and values and dreams in the UN Charter It is also happening in Syria Where a no and now forgotten war has taken the lives of more than 300,000 souls 4,000 last year alone and it is happening in Gaza where 24,000 people have died in just 100 days and hundreds of thousands stand on the brink of a humanitarian catastrophe elderly people women Innocent children who have lost their homes their jobs their families Of course and now are On the verge of losing their homes and hope we recognize Israel the legitimate right to defend itself against Ville and monstrous Terrorist attack, but we also demand the respect of international humanitarian law That is why here today. I would like to reiterate once again the need for an Immediate ceasefire and for convening an international conference to implement a definitive solution to this long lasting conflict Solution that recognize the existence of two states Israel and Palestine living in peace and security. I Want to do so because this human drama must be stopped Because the current course of events will not help either the Palestinian people nor the Israeli But also because what is at stake is the security of the global supply change It is straight Prosperity the stability of the entire Middle East and the continuity of the multilateral order friends the future the future stability of the world is being Decided in Ukraine and Gaza while we speak so we cannot Get this wrong as we got it wrong in other places We must be current and uphold the same principles and values whatever and whenever there is a breach We have to push for dialogue for the rule of law and for peace The second global challenge I would like to share with you Is that we need to address the governance of artificial intelligence Look, I am a firm believer of scientific progress. I'm sure that the AI and other cutting-edge technologies are the best The best option we have to overcome challenges such as aging The environmental crisis the spread of diseases or low productivity and that if we use them Well, they will allow us to reach unimagined levels of welfare But I also believe that these opportunities should not make us ignore the threats polls revealed that a majority of citizens think AI will destroy the jobs Widen the gap between the rich and the poor and worsen their standards of living and We must listen to these fears We must pay more attention to the concerns of our workers our youth our elders and less attention if I may to the empty promises of some silicon valley gurus Who are more interested in gaining followers or claiming the foremost list than in the true progress of humanity? Our duty is to understand that people's concerns are not ignored That the danger is real and that we should give them an effective and coordinated coordinated response Today more than ever the world needs a global governance of digitalization The governance that defends the fundamental rights of citizens above the interests of states and corporations a Governance that tackles the cyber threats Deep fakes toxic lies that circulates online and threaten our democracies and The very safety of our children a governance that guarantees that AI systems do not Incorporate discriminatory biases or replicate old injustice While it facilitates innovation and investments for the development of this technology That is the purpose of the European AI regulation recently approved under the Spanish presidency of the council and please do not Take me for a loot it I'm a staunch defender of technology technology out progress I am not I am the president of the country that is determined to have a leading role in the current Industrial evolution a country that has launched a strategic plan with more than 12.5 billion euros to foster semiconductor manufacturing in Spain a Country that leads the European rankings on the digitalization of the public sector And that has just launched one of them ten most powerful super computers in the world I firmly believe that digitalization will have good and Necessary that it will make life better for all of us But I also believe that history teach that this result will not come by itself We will have to fight for it and we are going to do it for the sake of Of our children and our planet Those of us who learned to not To believe in the invisible hand of the market cannot now profess blind faith in the invisible hand of artificial intelligence Invisibility is usually sold to the devil. Not good I only trust the hands of flesh and bone The hands or the ones that rise the shutter of the business every morning The ones that hold the book at school make dinner at night for their family or cast a vote in the ballot box I care I care for those hands real and visible That is why I believe that the third major challenge ahead of Of us is to ensure the prosperity of our citizens The far right is growing Autocratic regimes are proliferating in the West and other regions of the world But the truth is that this terrible trend is only a symptom of Deeper problems. One of them is the erosion of the middle and working classes the same middle and working classes that have not always benefited from the economic transformations of the last few decades That suffered during the financial crisis of 28 2008 and 2012 and That now are anguished about the future Marked by uncertainty while they keep losing poor chasing power Life is expensive It already was before Putin's war and the pandemic combined to unleash an inflationary crisis Saving some money buying a home or simply going on vacation is becoming Increasingly difficult for a growing part of the world's population and that That is a problem A betrayal to those who build this system with their hard work and sacrifice And to whom we owe everything democracy Social justice and freedom So we must stop this erosion and we must do so without turning our backs on our values The environmental crisis or the needs of the poor Countries in short we must be bold and define a new paradigm of prosperity a new economic and social orthodoxy that takes advantage of the knowledge and The new tools we have to couple the economy growth with environmental sustainability and prosperity for all I'm fully I'm fully aware that this is the goal pursued by many governments around the world of different ideologies and I must tell you that this is ultimately the main project that my country Spain is undertaking In recent years, we have shown that it is possible to create wealth and improve workers Conditions at the same time. We have increased the minimum wage by 54 percent. We have expanded labor rights We have reduced temporary employment inequality and poverty and we have created more than two million new jobs Many of them in high value added sectors such as the tech industry At the same time We have grown above the eurozone and the OECD average We have been one of the fastest in Europe in bringing down inflation We have attracted more FDI than ever before and our companies have produced record profits In short, we have shown that economic competitiveness and the people's prosperity are not incompatible Furthermore, we have also shown that it is possible to strengthen the welfare state while underpinning its sustainability the Advancing gender quality is not only a matter of justice But that it has a positive impact on economic growth That investing in science innovation and human capital will result in long-term productivity gains We have lowered Taxes for the middle and working classes and raised them for the wealthy We have cut the public deficit by half We have expanded the support that the state provides to both citizens and companies We have implemented an unprecedented policies billions of euros to support workers and households Free public transportation and a pioneering Minimum vital income that already benefits more than two million vulnerable people in my country We have promoted policies that we are or we were told were impossible or reckless And yet they have proven to be possible and beneficial today Spaniards Know that neoliberal policies do not work That the option of cutting the size of the public sector and living citizens and small businesses on their own when problems arise Makes no sense and that when we collaborate and stand together together We are stronger my country has shown that is that is possible to grow while fighting climate change I Say that in five years We have cut our consumption of natural resources by 7% reduce our emission by 10 points and increase our renewable energy production by 34% in 2023 Spain generated half of its electricity from the Sun wind and water We have been the first major EU economy to achieve this and these environmental Advances have not made us poorer Not have they made us less competitive Quite the contrary They have allowed us to develop new industries create thousand of new jobs and generate energy at very competitive prices today my country Spain households and Businesses pay 58% less for the electricity bill than in 2022 but To further succeed This new model of prosperity will need to increase the involvement of the private sector Companies are essential for the growth and well-being of our country They create employment Innovation territorial cohesion opportunities to make us better But the creation does not occur in a vacuum You your companies are a product of democracy a product of a rules based international order and Of welfare state that sustained the middle and working classes that guarantee peace and ensure adequate levels of human Capital and prosperity Without these pillars your businesses models would collapse like a house of cars And for that reason I call upon you to get involved Help us to rise the poor chasing power of workers to stop the climate emergency To vindicate international rules and to defend democracy and fight the involution represented by the reactionary way wave sweep in the world in short In short help us to give people a better life Do not buy the old neoliberal postulates that portray the state as a poorly Extractive entity does that doesn't know that's not sorry generate value Or that claim that the only responsibility of companies is to increase the profits of their shareholders These ideas have been proven wrong By science and by experience you know it You know that companies need governments to innovate and grow and that if companies do not work together If they do not align their interests with those of society as a whole We will not be able to overcome the great challenges of our time And this will have an impact for good on your businesses So act accordingly act responsibly Think in long-term do not allow yourself to be dragged along by those radical media outlets and political parties that are Obsessed with projecting as a systemic rivals that profit from selling Paralelization do not fall into the trap. Let's cooperate. Let's collaborate. Let us take Advantages of the major challenges I mentioned earlier to build bridges enhance synergies and establish new forms of public-private cooperation and collaboration The government of Spain is your ally We have learned by our experience that there is a Virtuous circle between growth and redistribution of growth That the best and the most resilient way of growing is by making sure that the benefits of growth Reach the entire population, especially the most vulnerable Spain is a paradise for those companies that want to prosper through innovation talent clean and cheap energy Institutional stability and top-notch infrastructure for those companies that want to get rich by generating real value and Paying their fair share of taxes we welcome these companies with open arms So dear friends We are at the down of a crucial year a year in which the future of the international order and of liberal societies Will be shaped our citizens won't fail us. I'm sure they will be up to the task as they always are in the crucial moments But it is important that governments and companies are too We must work together to build a new prosperity a new virtues triangle Formed by the private sector the state and civil society that will allow us to guarantee Economic prosperity and has enhanced sorry well-being unequality and ensure environmental sustainability for all and all across the world It won't be easy, but it will be worth the effort which are left. Yes. Thank you very much Thank you very much Prime Minister as you said the FTI in flow to Spain is Very high the highest you have seen in the past economic growth is higher than the euro Average and also inflation lower Do you think that some of your colleagues in Europe can learn something from your policies and what? Policies do you think they should be inspired by? Thank you. Thank you for for your question. I would say that we are living in a period that we need leaders that transform Societies and not societies and So to keep that in that is stability political stability social stability economic stability within our societies, but also Thinking broader at the European level. We need to transform ourselves to to earn competitiveness to understand that climate change digital transformations are Big tools for the for the good of our societies and not to use some of the crisis that we're facing such as the war in Ukraine and the energy prices to slow down or to put aside our commitment regarding the ecological transition of our economies and That of course that idea of transformation means that for instance when we touch our experience chairing the European Council during the last semester And the reform that you mentioned before the electric reform You know this has been a Real and very complex debate and I think you know the companies I think also the Commission and the Parliament but because I think that we reach a very important agreement For the good of our continent and our competitiveness Do you Prime Minister think that sometimes we lack self-confidence in Europe? You know in 2012 International actors were saying that the euro was gonna Be in really deep Problems even challenged as a currency still the second most important currency in the world Then it was Greece that was gonna go bust and no together with Spain one of the fastest growing economies You had one of the highest youth unemployment and unemployment rates and you are knowing like a comeback situation and We were gonna also be freezing the whole winter because of making ourself Independent of Russian gas Is it a little bit do we have to explain also more the political processes we have in Europe when there are? Democratic states that come together of course There will be discussions and then it usually ends up with something But the media is writing so much about the process so people think that maybe this is a mess, but this is democracy and I I Completed with you. I think that the most wonderful experience that I Have from this debate around the table of the European Council is to see prime ministers and head of the states Debating and trying to to find a landing zone for the good of our societies And this is democracy we and democracy needs all the it has its timing To to move forward further, and I think that this is what we did for instance during the pandemic During the you know this very important agreement on the next generation phones And of course our common approach With regard to the conflict in Ukraine, so you know this is The the instruments that we have and I think that this is the most important a strength That we as Europe Have but maybe sometimes you think it's of course is a little bit tough I and so you also and and of course, you know you you were telling But before you know in your remarks that of course we we have this Spanish precedency we open the talks of negotiations with Ukraine Moldova Western Balkans were some coffee breaks there weren't there and and indeed, you know This enlargement will table the urgency and necessity to reform our institutions our and our Decision-making process, you know passing from a you know unanimity to a qualified majority, but these are you know like instruments tools the most important thing is the geopolitical shift that we are going to witness in Europe in the coming years, and I think this is for good and And this will also stabilize in my opinion in the short term and medium term the situation in the Eastern part of Europe But in your speech you also strongly underline the importance of sticking to core values European values you and Charter democracy and all this and We're seeing currently polarization In in the US There is Fundamental polarization, but aren't we seeing the same happening in the EU today and Are you afraid that this polarization will just escalate or do you see? Possibilities for some convergence moving forward you were able to push through for example the accession of Ukraine and and Moldova that was not expected But how do you see that? How how is it possible to get more convergence and not end up in Disagreeing on everything so you have like three dimensions Of the debate and three institutions in the European Union framework. The first one is European Council, and I I see you know a common sense That we need to move forward even even if I mean it doesn't matter if you belong to a right-wing political family or Left the wind political family. I mean, I think that there's a landing zone on a common sense to move forward in some issues such as this Internal reform that we need to face In order to be effective in in the enlargement process Then you have the Commission and for that I believe that after the European elections what we need is to have a an agreement Among the major political families social Democrats the popular party and also Liberals and Finally, we have the European Parliament and for that. I think it's crucial. It will be instrumental that our citizens You know they Strength I would say the traditional families and know the far right in order to to have the best outcome of these Elections and we can have a constructive European Parliament, but But I have a you know a positive Instinct on what is going to happen in Europe in the coming years I think that we have learned a lot from the crisis that we suffered over the past four or five years the pandemic but not only the pandemic also the war in Ukraine and and what we are going to witness is a more federal European Union and More integrate European Union. I'm really happy to see that you know We are opening ourselves to Western Balkans, which is a region that we you know are very committed You you see present which is this is a good friend. He's a good friend of Spain and myself So, you know happy to see him again here with me and of course with Ukraine Moldova and Georgia How how historic was the agreement on the accession of Ukraine and Moldova? I think it was I mean, you know negotiations We have we have we have you know, we I come from a country Thanks to the leadership of Jackson of Spain and Portugal we enter European Union Back in the 80s of last century So, you know, we were very happy and very grateful to have been the presidency of the European Council in this very historical moment of the European Union project, so And I think it was a very important political message the one that we sent to the Ukrainian society and Ukrainian government and let's hope that in the coming months we can end this war and respect the territorial integrity of Ukraine and we can you know build a peace In the Middle East and the Eastern side of Europe and the best Balkans are the next your members well, I mean That's that's for sure. You know, we we are very very committed and very vocal, you know Alexander knows on his accession to the European Union. I think that that will bring us a lot of strength and we will provide Distability that that part of the European Union or Europe needs Much as gracias. Thanks. So great to see you here again and We are now moving from Prime Minister Sanchez and Spain to your friend President macro of France. Good. It's a good segue. Absolutely. Yes. Thank you. Thank you