Friday, February 08, 2019

Katainen, vice president of the European Commission: "The Spanish judicial system is one of the most independent in Europe"


"We believe that Spain and its institutions are strong enough to manage the situation in full respect of the State Law and the Constitution"

"Our decisions [on the budget] are not different because Calviño is the minister; however, the fact that we speak the same language makes it easy"

Jyrki Katainen, vice president of the European Commission and former Finnish prime minister, is spending his final months in Brussels and in the front line of politics. A few months ago he considered presenting himself to succeed Jean-Claude Juncker, but the absence of clear support, the fatigue of a lifetime in the public front and the political career of his wife, who will enter Parliament in the next elections, made him to opt for leaving it.

Tomorrow he will arrive in Spain, where he will meet with the Minister of Defense, the Minister of Economy, Vice President Calvo and Pablo Casado and Juan Manuel Moreno. He will meet with the CEOE and will hold debates with citizens in Malaga or Fuengirola. He defends the "tough measures" during the crisis, admitting the high "social costs", because thanks to them, he says, Spain has been able to recover so well. And it does not avoid questions, neither about populism, nor about the Spanish Budget nor on Catalonia.

Spain goes up in the rankings of the so-called Juncker Plan.

        Spain is the fourth country to benefit from the EFSI, that's a very good thing. The European Fund for Strategic Investments (EFSI) has provided 8,100 million in funds which will activate 46,200 million in investments, a very significant figure. There are 147,000 SMEs that are financed through these funds. In terms of real money it will mean up to 15,500 million euros in investments for them. The Juncker Plan has had an important impact on job creation and the growth of Spain, but people do not know it.

No, they do not know.

        It happens many times, especially when talking about SMEs. The bank reaches an agreement with the European Investment Bank, supported by the EFSI, but the clients do not know that it is thanks to this EFSI. In any case, as long as the financing comes, that's fine. In the EU's Multi-Annual Financial Framework, in the structural funds area, Spain is the fourth largest beneficiary in research. The new Budget has additional items for border management. The EU plays a big role in Spain. I do not try to buy votes offering money, it's just reality.

Spain does not have yet and might not have a Budget for 2019. And you have shown suspicions about the draft.

        Spain will continue to be a net beneficiary with the new EU Multi-Annual Financial Framework. The Structural Funds will increase 21%, I think. It’s a lot. Nadia Calviño knows the Budget from top to bottom. Knowing the national limitations, the European Budget should increase. I am sure that things like R & D, border control, security are well understood in Spain. On the Spanish Budget, the Commission has evaluated the latest draft and there seems not to be great changes compared to the initial one, that's fine. The only significant concern, shared by the Bank of Spain, is that the growth would be lower than previous estimates. And what kind of impact could this have on the Budget.

It is not the only question that you do not see clearly.

        We have some doubts about the digital tax, about whether it can really contribute as much as the government plans. We do not know all the details yet, it is complicated to say something safe, but the Commission has expressed doubts.

Doubts, no big worries.

        Not on the Budget in general. The economy is growing, although it is something less than anticipated. Unemployment falls, employment goes up, many of the fundamentals data are good. People often forget one fact: the reason the economy grows and is so resistant is that Spain did a good job during the crisis. Unlike what happened with others, Spain never lost its credibility. The measures were very hard and I understand that the social cost was high, but the country managed to defend itself and that is the reason why it is now where it is.

You, as a former Finnish prime minister, were among the most 'hawks' during the crisis. There has been some self-criticism from the IMF, President Juncker offered some nuances about Greece. Do you share those mea culpa? Did you go too far?
        We cannot put in the same basket all the countries that needed financial help during the crisis. Greece is a totally different case and cannot be compared to Spain. In Greece, clearly, the medicine was toxic. Things could have been done, to a certain extent, differently to soften the social costs, but the problem is that there was no confidence in Athens among the Member States or it was very, very low. That made decision making very difficult. In Spain, in general, the analysis was different. The government managed to begin to balance the situation and the measures were credible. I do not know how different the performance could have been. Spain was different from the rest in terms of its size, we were lucky that it maintained its credibility all the time, that the Government was able to manage the situation. Spain never became a problem in the Eurozone..

What is the role of the fact that you in the Commission, in Brussels, know Minister Calviño so well? The response to unilateral changes in deficit targets in the past, the letters, were different.

        We want to treat everyone in a similar way, regardless of the different personalities, but it is also true that Nadia knows what we expect and what we are thinking. The meaning of certain verbs, sentences...

She speaks your same language.

        Exactly. Our decisions are not different because Nadia is the Minister but the fact that both parties speak the same language makes understanding easier. It is something very human.

What are you going to say to Pablo Casado, who has been very critical of the Spanish budget in Brussels itself?

        I want to hear him. I always try to meet with governments and opposition. We will talk about my portfolio, the European Budget. It is very normal for the Commission to argue with the opposition. Sometimes it brings additional information of relevance. When looking at the Budgets we look at the numbers, the figures. We do not tell anyone that they should take other measures if what they propose leads to the same result. There is a lot of margin. Sometimes the opposition provides information on the measures. About its credibility.

Pro-independence groups occupied the headquarters of the Commission in Barcelona a few days ago. And there is a campaign again now that the trial of the 'procés' leaders begins. Are you worried about what happens?

        We are not worried because we believe in the Spanish judicial system, which is certainly one of the most independent and credible in Europe; I have looked at the indexes. We believe that the country and its institutions are strong enough to manage the situation in full respect of the Rule of Law and the Constitution. Of course all the incidents or protests that we have seen raise concerns, but we have no doubt about the institutions in Spain.

Puigdemont blames the Commission and Juncker for what is happening and for the Catalans' loss of understanding with the EU.

        The EU is very popular in Catalonia. People always have the right to present their vision, their desires. Freedom of expression is guaranteed, but everything you want to do must be in respect to the law, the rule of law, the legal order, respecting the institutions.

You considered yourself for a candidacy of the EPP to the next European Commission but ended up resigning. Why?

        Two reasons. The first is that I've been in politics all my life and I've started thinking that maybe I should do other things. I am still at an age that allows me to open other professional paths. The second reason is that my wife chooses and has a good chance of entering the Finnish Parliament, and if she is there we cannot be in different countries.

What options do already known candidates to become president have? Will the Member States allow it?

        You never know. The last time it was quite clear that the spitzenkandidat would be president, but now it is less secure. At the same time the European Parliament has said that it will not accept anyone else, that it has to be a spitzenkandidat. If you look at the polls, the nationalists or skeptics would have about 155 seats in 705, an important minority but that opens the question of how many parties will be necessary to have a comfortable majority in Parliament. Before there were two, three. Now it can be four or even five and that will complicate the matter.

Understanding the EU is not easy. This type of clash between institutions does not help, and even less in the face of what can be the most important European elections.
       
        We do our best to communicate, but everything we do here is not, and will never be, comparable to the role of governments and national political parties. Local leaders do not pay attention to European policies, if they do not communicate the priorities and what we do here, we cannot expect people to understand it. Citizens should know at least the priorities of their countries regarding the EU. I do not say that they should praise the EU or acclaim it, but they should show its relevance. For example, talk about climate change, circular economy, artificial intelligence, or how to improve cooperation in Security and Defense.

Do you really think that a party talking about circular economy or artificial intelligence and linking that to the EU would change something?

        Yes, I really believe it. I remember, before the crisis, when in my country the EU was in fashion and everyone wanted to be close, to be linked with Europe. 10 or 15 years ago.

Then the EU became toxic, that's what you told me the last time we spoke.

        Exactly; with the crisis the EU became toxic, nobody wanted to touch it except to criticize it. Now more and more leaders are returning to it. The EU had not been that popular for a long time. People's expectations are also greater than before, there are more global challenges that a single country cannot address.

You believe that the EU has not been so popular for a long time, but we have more skeptical, europhobic or populist movements. Some people clash head-on, like Macron with Salvini and Orban. Others maintain that this polarization is an error. How do you see it?

        I think that politicians should always fight for their values, for what they believe to be fair. In my country, when the True Finns were on the rise, it was partly due to the EU rescue programs. I signed all of them and it was not popular. I think I did the right thing, however hard it was. If I had yielded an inch I would have made their cause bigger. I fought for what I believed was right. If you try to move towards them, they impose their agenda. If you do not subscribe to those same ideas, genuinely, it is better not to get into their territory. It does not mean that you have to be aggressive but there are times when you must respond, fight. I get a little tired of the fact that the minority imposes and dominates the political debate and a silent majority does not know what to do or does not dare to intervene.

But in the end, the True Finns entered the Government and now they are not what they were; is it good to involve them, to put them in the management?

        Exactly. The best remedy to reduce populism is to involve them in decision-making and face their responsibilities. Sometimes it does not work, of course, or they do not accept to participate. Their life is all white or black, and governing is making difficult decisions.

You go to Andalusia. Your colleague and Vice President of the Commission Frans Timmermans attacked the PP and Citizens for contemplating this path with Vox.

        I do not like to participate in local debates if they do not have a link with the EU. Sometimes I enter in the debate if fundamental values ​​are at stake, or the Rule of Law, but if not, better not to participate. It is up to Spanish voters to decide who governs them.

There are 100 days left for the European elections. The message, the Eurosceptic line, is clear. How should the pro-European sentiment you defend be articulated? On what pillars?

First, we must not underestimate the ability of citizens to understand the things that are happening. The populist and nationalist way is to sell complicated issues putting them in nice packages and simplifying. I understand that some buy that, but the simple solutions for complicated problems are not true. Those who present these ideas lie to people.

In what do you believe?

        Give people arguments to think about. I would concentrate on the circular economy, on having a sustainable model. In artificial intelligence, to be competitive and create ethical standards, because we are the only continent that really seems worried about having them. Third: climate change. Fourth, Security and Defense. And Africa, something key to the future of Europe. I will test these five points in Spain and invite people to weigh on it.

Allow me a flurry of short questions. Do you need 27 commissioners, one per country, or with less?

It is good to have one per country; this helps people understand the EU, and to treat everyone in the same way.

A more political or more technocratic European Commission?

The Commission, and this is the most important thing, is the guardian of the Treaties. You must maintain that role because no other institution can do it. And in an era in which all democratic institutions are in question we must keep them standing. That said, the Commission can be political. To have priorities, because our prerogative is to launch legislative proposals. It would be hypocritical to say that all our ideas materialize in an ideological vacuum, it is not true. I am a politician and my priorities come from my beliefs; and this is the same in the case of all my colleagues. But we must be careful not to fall into certain relativisms, to say that everything is political, everything is relative, that all rules can be twisted by political pressure.

Which is better, only one president for the Commission and the Council or better follow as now, with two?

        (Thinking a lot) I used to think that only one would be better, but seeing the institutional design ... it might be better to continue as before.

Do you approve the transnational lists for the European elections?

        No, better to follow nationally. I do not believe in transnational lists. MEPs are chosen by lists and must be very well known, coming from each Member State at least.



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