 You are an advocate of a Europe that plays a stronger role in global affairs. Spain is one of the leading countries in the eurozone in terms of economic growth, and you have reaffirmed your government's compliance with the EU deficit requirements, I understand. Following your appointment in June last year, you have announced the feminist, ecological, pro-European, and social government. Many of our participants, I know, are interested to learn about the path forward for your country under your leadership. I also understand that you are keen to push reforms to advance Spain in the area of the Fort Industrial Revolution, and your government is particularly active on the start-up front. You also have inherited, as we know, multiple challenges, such as a highly complex Catalan situation and the previous government's budget. Prime Minister, we look forward to continuing the debate about the future of Europe, and I invite you to share with us your vision and Spain's role in Europe and the world. President of the World Economic Forum, ladies and gentlemen, ten years have passed since the great international financial crisis erupted. Today, with the benefit of hindsight, we know that it was no ordinary crisis, nor was the subsequent recession just another recession. In fact, some economists have not yet emerged from it. Furthermore, the recovery we are currently experiencing is no ordinary recovery. We run the risk of forgetting it all, forgetting what happened, forgetting how we suffered, forgetting our mistakes, and forgetting what we promised to change. The initial drive to coordinate globally was positive and drew international finance back from the brink. However, once the danger had passed, we set our sights lower. Some of the most pressing weaknesses of global capitalism have yet to be addressed conclusively. The proclamations of remodeled capitalism have faded with time. For instance, we have not been or even succeeded, sorry, in eliminating tax havens. Looking beyond key macroeconomic indicators, our societies are still bearing the burdens of the crisis – polarization, reactionary populism, and inequality. We must understand everything that happened and the mistakes we made. And we must change now that we have some degree of freedom to do so. But we must do this mindful of the fact that the economy is not self-serving, it serves people. Growth, yes, of course, but to improve people's lives and enhance welfare. Growth, yes, of course, but at the same time learning how to grow within the limits permitted by our environment. Our societies are facing an unprecedented pace of change. No part of our lives will remain untouched by technological and economic change of the fourth industrial revolution. In the developed world, digital transformation has already reshaped our economies and continues to do so every day. It has transformed the way we relate to each other, the way we communicate, the way we learn. To a great extent, digital transformation and globalization are part of the same phenomenon. And this phenomenon, as already known, questions the very existence of nation borders, redefining the concept of borders, complicating decision-making, rewriting the notion of sovereignty, and creating new challenge for global governance. So we must understand this phenomenon and factor into the design of our public policy. The opportunities offered by new data processing technologies are immense. Technology applications such as artificial intelligence, big data, and machine learning must increase the effectiveness of policies and improve citizen services in sectors such as medicine, public health, security, education, and mobility. However, digital transformation also brings with it challenges to the economy which we must address. For example, taxation of new digital businesses or misinformation and fake news which can undermine democracy or the loss of jobs to new digital platforms. We run the risk of creating new technological divides if we do not ensure that all of the citizens of the earth are participant in this modernizing revolution. And this is a responsibility to which we must devote every effort. Inequality is destroying us. Inequality is destroying all of our societies. It is an ethical aberration and a source of destabilization. In the 20th century, politics turned its back on the economy. And the result was two world wars. Therefore, in the 21st century, it would be irresponsible to ignore the economy's political impact. We must be able to understand the motivations, desires, and political consequences of decisions that go beyond what is shown on a balanced seat. Decisions that result in marginalized men and women, young people with limited prospects, and workers who live in inadequate conditions despite their best efforts. More than a decade after the Great Recession, the world is growing, but more weekly. Less in synchrony with levels of inflation that make it difficult to return to normal monetary policy, especially in the Eurozone. With global debt, levels to remain too high, and with an increase in inequality, which as I have already said, is in many cases unacceptable. In this situation, decent politics must kick in its space in order to keep up with the world. Because if it does not, shameless politics will pull at the cracks that appear in our societies and drag us back to disaster. Reactionary nationalist populism are no longer the problem of a country or of a continent. They are the main challenges facing liberal democracies. Perhaps if we had not forgotten that the economy must always be at the service of the people, these nationalist populism would not have come as far as it has. The task of politics is to look to the future and provide people with answers. If we have lost a decade, we have the obligation to win the one ahead. To recover what we have lost and to take advantage of the opportunities ahead of us. In different places on the planet, we are seeing technological change being perceived as a threat rather than as a source of progress. We are seeing ecology and the fight against climate change perceived as placing constraints on economic activity rather than as offering gains in social well-being. We are seeing globalization perceived as a challenge to its nation's identity rather than as a source of cultural wealth. We are seeing feminists distorted, presented as pitting women and men against each other rather than as a campaign for truly equal opportunities. We are seeing the demographic change in advanced economies presented at times as a battle between young and old rather than as a chance for intergenerational equity. Technological change, ecology, globalization, feminism, and demographic change. Each of these five challenges lies behind a fault line. In reality, it is the same fault line for all five. The line that separates social progress from privilege. Because our societies have become wealthier and have achieved outstanding levels of well-being, yet they continue to create many outcasts, those whom Simon Bauman describes as having been relegated to the status of human waste. Bauman explains this very well. The rich are getting richer simply because they are rich. The poor are getting poorer simply because they are poor. And this contravenes our social contract. And it weakens our democracies. Citizens need to feel that their fates are in their own hands. That effort, talent, courage count for something. That social dynamism is really and that they can make autonomous, feasible life plans. Our priority is to reverse this negative model in which people fear robotization, equality for women, clean energy, and even solidarity. And this can only be reversed if politics and economics go hand in hand. In 2018, we saw the tailwinds that had fuelled world growth in recent years begin to die down. And at the same time, we witnessed a rise in the tensions, risks, and uncertainties both in Europe and elsewhere. Uncertainties which populist and far-right forces are using to their advantage. And this creates economic instability which hurt us all. We are witnessing a turning point in world growth. I cannot help but share with you here the pride that I feel in Spain, which continues to let growth among the main European economies and our prospects continue to be robust. According to the European Commission, Spain will grow over the years on average until 2020. And this week, we learned that the IMF had lowered most countries' growth forecasts that left those of Spain unchanged. In 2019, we will create in our economy over 330,000 jobs. Spain's risk premium is currently stable at approximately 110 basis points. And in 2018, Spain was visited by over 82 million tourists. Spain inspires trust both in international organizations and in the financial markets. The Spanish economy has solid foundations with the financial sector that has significantly reduced its risks. The public deficit has been lowered, and the current account surplus has been maintained. A good proof of this trust can be seen in the trend in foreign direct investment which continues to grow at high levels. Why does this Spanish economy merit such trust? In my opinion, for three main reasons. First, social harmony, including in the area of labor relations. Second, legal certainty. And thirdly, strong institutions and companies. And I would like to add a fourth very important reason. Spain is a singularly Europeanist country. Not one single political party in Spain is openly a receptive. Our identity is Europe, not a nostalgic Europe, but a modern Europe, a Europe that is a driver of change. Europe has a community of values, and those values are our values. But our identity also wants to be that of the United Nations 2030 agenda, which is in an accurate summary of the challenges we are facing and of how to address them. One of my government's priorities is to strengthen social cohesion. Out of a sense of justice, but also because a more egalitarian society contributes to a more resilient, more stable, and more balanced economy. We have just present our budget for 2019, which was designed with three goals in mind. First, combating inequality by butchering the welfare state, changing the economic model, recovering the value of science, innovation, and re-neutralization. And finally, curbing public deficits, guaranteeing the long-term sustainability of our accounts and debt reduction. And let me tell you about a key issue which is another of my government's major economic priorities, as I said earlier, combating climate change together with an energy transition. Work in this area will require ecological and inclusive responses by every government. The climate change we are facing is global and cross-cutting. It directly affects a great many sectors such as housing, tourism, water, mobility, to name just a few. But this ecological transition, which is starting to be known in many forums as the Green New Deal, should not instill fear. According to the International Labor Organization, for each job destroyed by energy reform, four new ones will be created. Spain is in a privileged position to let this change. We know what to do, and we are going to do it. In this process of change, my government cannot nor does it want to act in isolation. It needs to work together with companies, with citizens, and with the financial sector. This change will bring enormous opportunities for all and will mobilize 200 billion euros in investments over the coming decade. 80% of which will correspond to the private sector. In short, we are creating wealth, we are creating jobs, we are creating opportunities, and we are creating equality. This means that we are creating future for our country. Ever since my earliest youth, I have been convinced progressive. I grew up knowing that the finest moment in the history of humankind began in the post-war era and in Europe. In the knowledge that the compromise covered out by people with vastly different ideologies and convictions, which became known as the social democratic compromise, brought about the most brilliant political achievements of all time. Peace, social well-being, universal healthcare, compulsory education, protection of the disadvantaged, economic growth, and freedom. This constitutes our social model, and today no one or hardly anyone would dare to question it. I do not agree at all with the idea that progressive politics is a state of crisis, that progressives are no longer creating anything. Quite the opposite. Progressives' forces are the only ones who keep exploring paths that may lead us to a promising new social pact. What has come to an end, in my opinion, is the conservative, protectionist, and provincial model which is incapable of seeing the world as a space that belongs to everyone. What has also come to an end is the neoliberal model that led us to the Great Recession, a model that mixes up deregulation and liberalization, and which offer us an increasingly hostile world for those who are not powerful. What ideas have they launched in recent decades? None. The progressive by contrast has continued to propose political concepts that some label as revolutionary, such as predistribution of wealth and universal basic income. And let me tell you something. They are not revolutionary. They are necessary. They reflect the rationale of the world we are heading for. I have no doubt that they will be the foundation of the new social pact of the new era. And that, moreover, as in past times, they will be embraced by sensible people of all ideologies. And this has happened often in history, when concepts such as the women votes, universal healthcare and the public pension system were considered revolutionary. Let us lift our gaze from economic charts and look straight at the future. Thank you. Muchas gracias, Prime Minister. Thank you for your comprehensive and insightful speech. Also, with some visions for Europe, community of values you mentioned related to Europe. We know that there are European elections in the spring. That will be very important. We know that Spain will also play an important role after the European elections. In the north, you have France. President Macron has shared his vision for the European Union. How do you see more convergence also inside the European Union along the ideas you just launched? More inclusiveness, growth that is more sustainable and creating jobs. Do you think you can influence the rest of Europe in this and also bring the visgrad countries with you? Well, I hope that we will achieve this idea of influencing as a country in the construction of the European Union. And I think that, unfortunately, Spain during the last decade has been missed in the big debates about the European construction, the European Union future. And this is something that we want to be present after the European elections, not only in the parliament, but also in the European Council. Well, I'm fully committed with the European Union project. This is sure. I do believe that... After the Brexit, I think that it gave us not only as a country because we will be, I believe, one of the biggest, not only economic, but also a political biggest country within the European Union. But what I'm trying to say is that I do believe that Brexit gave us also some challenges and some opportunities for member states to strengthen and to deep in our process of integration. What are, in my view, the main challenges that we have to face as a Union? First of all, I think that we must be better prepared for potential economic crisis. And that means that we need to finalize the European Economic and Monetary Union. And this means that our next goal must be, not should be, must be the European deposit scheme. And also something that we are also defending in the European Council is to create European unemployment insurance, which I think is key to legitimate vis-à-vis the citizens, the project of the EMU. So first of all, we need to finalize this monetary, economic and monetary union. Secondly, I think that we need to strengthen our approach, our common approach of the migration crisis, migration flows that we are facing, not only in Spain, but elsewhere in the European Union. Thirdly, of course, climate change. I think that we need to boost and we need to finalize a single market, energy single market, which is, of course, in the interest of our country because of the interconnections and the connectivity that we need between France and the Iberian Peninsula. And finally, as you mentioned before, of course, the role that we want to play as a union in international relations. I do believe that we need to strengthen multilateralism and do believe that we need to lead the reform of the World Trade Organization in order to guarantee free trade. Of course, with these trade agreements that we are having or we are negotiating with other parts of the world, we're opening new opportunities for the European economy. And I would say that the fifth challenge, of course, is the Fourth Industrial Revolution. And this means that every country, and we are doing so in Spain, we are developing the 5G technology in our country. We are implementing and delivering this idea of startup nations with a new specific law for startups. But of course, we need to culminate and finalize also the digital market at the European level. So there are many, many things that we need to improve to strengthen at the European Union level. And to conclude, I would say that we need to protect Europe if we want that Europe protects our citizens. So this is, I believe, the challenge that we have until the European elections and especially after the European elections. Well, this is a very rich program. And as you also mentioned in your speech, Prime Minister, the Fourth Industrial Revolution is not something that is coming in a decade. It's really here and we are seeing it unfolding. And it's about being competitive in dealing with the Fourth Industrial Revolution, producing higher up in the value chain. But one of the challenges that Europe is faced with is that we are also seeing no increased technological competition. Some, I would say that the trade complications, no, between China and the US is also part of competition on who is gonna be on top of the Fourth Industrial Revolution and all the different technologies from AI to the internet of things and all these very important new technologies. Are you concerned that Europe can end up in a squeeze between the US and China and that Europe has to take side? That's one question. And the other one, do you believe that Europe has the capacity to come together as the European Union and say that we as the world's largest market can also be a major player here on pair with China and the US? And are you aspiring to take that leadership? Well, I don't know if we have the capacity, but we have the need, that's for sure. I think I was in Strasbourg last week speaking for the European Parliament and I said that we need to gain autonomy on artificial intelligence and all these technological revolution. And this is something that we are taking very seriously in Spain. We are leading the developing of 5G technology in our country, which is a key issue for boost the Fourth Industrial Revolution. We are also reforming our vocational training system, which is also very important for our youth. And this is something that we want to do with the companies, with the enterprise, and also with the trade unions, which I think is also crucial. And of course, I think that we are witnessing a huge change that we want also to implement and deliver it within our public sector. We are facing a huge change and the public sector, our public education and of course our economy and enterprise must deliver it in the short run. I do believe that we need to do that also at the European level and that is why I always defended in the European Council that we need to pass before the European elections the multi-annual financial framework in order to have a European budget that we put and we focus and we engage and mobilize economic resources for these new challenges that we are facing as a continent. Thank you very much, Prime Minister, for being here with us and also sharing your vision. I really think it's an ambitious program for reform. So thank you very much. Thanks very much.