Temer, Rajoy advocate reforms and closer Mercosur-EU ties

Brazil and Spain forged a number of deals in the fields of development, economy and trade, infrastructure, transport, water resources, and diplomacy. Documents were signed on Monday (Apr. 24) during a meeting between President Michel Temer and Spanish Prime Minister Mariano Rajoy at the Planalto presidential palace.

“This move represents the third major moment for Spanish investments in our country,” Temer said during the assembly. He and Rajoy noted the importance of structural reforms in the two countries and said they will work to bring Mercosur and the European Union (EU) closer together.

The Brazilian president compared the situation in both countries regarding the implementation of overhauls. “Spain and Brazil are going through similar moments. I heard an account from [Rajoy] concerning the large-scale reforms carried out in Spain in a moment in which [the European country] was facing serious problems in the economy, in balancing accounts, and employment,” said Temer.

“Today, we're modernizing Brazil's labor legislation and reforming social security. These are issues recently addressed by Spain. Rajoy made comments on the natural difficulties he faced, including protests, but, he said, the difficulties made Spain rise again with an extraordinary power in the economy and the fight against unemployment. Today, he is praised by all people of Spain, bearing in mind the overhaul he implemented over time,” Temer said.

Serious work pays off

In his address, Rajoy complimented the Brazilian president on the reforms, noting that “the gravity of public matters is always rewarded in the medium run. The creation of the appropriate landmark for the private enterprise to flourish with predictable legal security, coupled with the sustainability in public accounts, is the key to making our societies grow,” he said.

Also in the Spanish prime minister's view, “the Brazilian government has a number of ambitious plans for its economy in keeping with its immense potential, and I'm convinced that this is an opportunity for increasing the presence of Spanish companies in the country and optimize our trade.”

This is the first visit paid by a Spanish head of government to Brazil in nine years, as Spain's head of government is the president, elected by deputies, whose work is similar to that of a prime minister. Spain's head of state, however, is the king (former King of Spain Juan Carlos I was in Brazil in 2012).

Mercosur and the EU

Another topic mentioned by the two heads of government concerned Mercosur-EU ties. “The Spanish president was once again eager to say that Spain will make a significant contribution to bring this agreement to a conclusion,” Temer said. The statement was stressed by Rajoy, who believes the two countries “are convinced of the need to advance Mercosur-EU ties. Spain will remain an evaluator of this agreement.”

The situation in Venezuela, a member of Mercosur, where protests both for and against Nicolás Maduro's administration have led to conflicts, was also mentioned. “The situation in this brother-country deeply worries us,” said Rajoy, who believes the solution to the Venezuela issue must inevitably entail “giving the people their voice back, as they are the source of national sovereignty.”

Agreements

The deals signed Monday by the two heads of government seek to overcome the obstacles hindering the development of the trade between Brazil and Spain through economic cooperation. The pact on water resources, in turn, includes activities such as the renovation of the São Francisco River basin, and the exchange of expertise on the conservation of natural resources by Itaipu Binacional, which controls a hydroelectric plant by the same name.

Another deal consists of an infrastructure and transport memorandum, which unveils cooperation opportunities aimed at quality control for road building, highway transport management, railway technology, and the modernization of regulatory landmarks governing ports and air transport.

Finally, Brazil and Spain signed a joint statement on cooperation for development which will further bilateral efforts in such fields as renewable energy, racial equality, and an improvement in the quality of life of vulnerable families in Brazil's semiarid region. Also signed was a cooperation agreement between diplomatic schools in the two countries.

Translated by Fabrício Ferreira