I
am very grateful for the opportunity to take part in this Global Business Coloquium, at the new IESE campus in New York. Thank you very much for your warm welcome this morning. It is certainly a good way to begin our visit to the United States. The IESE business school is Spanish in origin but truly global in its outlook and prestige.
It is also a pleasure to greet representatives from US companies that have important economic relations with Spain and others from Spanish companies with strong US links; firms that in both cases strengthen daily the ties between our two countries and contribute to further advance our societies and economies. I also thank the panellists for their interesting contributions in the open exchange of views that has just taken place. The Princess and I are delighted to be here with you all.
Allow me first to dedicate a few words to this great city that is hosting our visit. New York, a paradigm of dynamism, resilience and many other virtues, deserves the admiration and respect of us all, for the spirit and courage with which its people endured the cruel impact of terrorism, and for how you have been able to reactivate the economy and regain hope and confidence after the economic and financial crisis.
As we arrived Yesterday I felt that the prestige of this great city's business community, combined with the experience and business insight that you all gather would make for a particularly interesting event this morning. Indeed it has been! We've had the opportunity to reflect upon the present and the future of economic relations between the United States and Europe, and their influence on the rest of the world.
Of course, we could not by-pass the present economic woes, especially on the European side?not only economic as we all know! But we also gave a good look at the broader picture. Because for as much as the large emerging markets are showing their muscle as they become increasingly important in international economic relations and institutions, we cannot -and should not, in my view- overlook, or rule out, the prevailing relevance of the trans-Atlantic relationship to respond effectively and responsibly to the new world challenges.
Clearly, in terms of GDP, exports, imports, foreign direct investment and business presence, the USA and the EU continue to play a very significant role in the world economy. Accordingly, when the weakening after-effects from the last great crisis persist on both sides of the Atlantic, the global economy also suffers. So, in this context, I strongly believe that the United States and Europe must stay close and cooperate to drive forward a new sustainable and sound phase of growth in the world. We most probably cannot do it anymore on our own, together I mean; but neither do I think it can be done without us by the rest of the world.
We can strengthen and revitalise cooperation in many areas, from purely macroeconomic policy measures to those aimed at the particular context in which businesses and other operators carry out their daily activities. We can converge in regulation, and also in good practices and ethics for corporate governance coming from within the business sector and civil society. In short, the economic and financial crises of recent years have, in my view, only strengthened the argument that favours more coordination and a truly global reach in any initiative il we vally want to generate a substantial upswing in well-being throughout the global community. But to do so, effective and loyal cooperation between the USA and a strong European Union is more than just an option, it's a must.
Globalisation, technology and the emergence of vigorous new economic powers have transformed the moved economic framework. However, it is very clear that the rise of countries like China, India and Brazil, with their competitive and fast growing companies in various sectors, is not only in itself very positive but it is also perfectly compatible with the economic and political template that the United States and Europe can continue to provide in the international context, in working for economic efficiency, innovation, education, multilateral institutions and universally recognised principles.
The roles to be played by the USA and the EU in the next few decades will depend partly on what our governments do, as well as on the commercial success of our companies; but also on how we all work together to ensure that globalisation brings countries together and fosters proper progress in all our societies. Again America and Europe must continue cooperating to achieve a more effective and healthy integration of emerging countries within the world economy and its multilateral institutions. Coordinated action in areas such as free trade or environmental management will ultimately produce a much greater impact than any single separate, unilateral action undertaken by one or the other.
Ladies and Gentlemen,
Promotion of entrepreneurial initiative could serve as a catalyser of this coordinated endeavour. Business ventures are crucial to economic growth and to the progress and welfare of society. The creation of new firms -and thus of new jobs- depends largely on the initiative of individuals identifying new opportunities for growth. Growth and progress in the United States and the European Union depends to a very large extent on entrepreneurs, on empowering a private sector that has high goals and the ambition and drive to achieve them, all under a strict, stable and predictable framework of laws and institutions.
In this respect, it is important to realise that one of the main features of Spain?s economic reality in recent years has been the emergence of new companies and business people capable of creating global brands in many different sectors. However we need to do more to broaden the base, to get more young men and women to start a business, take risks and drive up our economy and employment. The US, of course, illustrates to an extraordinary degree how entrepreneurs can transform their companies and business sectors, and contribute to define a very important part of the very essence or nature of their country.
I am absolutely convinced that the US and the EU can profit from sharing their knowledge in this field, overcoming any and all obstacles to the setting up of new businesses, enabling proper communication and knowledge-sharing between universities and the business world, and demonstrating a resolute commitment to quality in education at all levels. In this respect, there are many positive experiences in our countries we may consider and learn from, it is a dialogue that benefits both parties. The results of such a dialogue may help us expand these projects to other countries, so that business initiatives can become a driving force for change throughout the world.
Let me now express a few words about my own country and the economic relations between the USA and Spain.
Spain, like other countries, is currently experiencing serious economic difficulties. Some of the problems we face are shared by other European Countries, also part of the eurozone. These problems, which are partly the consequence of the Monetary Union´s fragile architecture can only be dealt with by implementing a stronger institutional framework for the euro. We need more Europe!
But Spain has its own domestic problems too. Our Nation is firmly resolved to overcome them and it is doing its homework. Our government is introducing very profound reforms that should put us on our way to correct the economic imbalances we have accumulated in recent times.
We enjoy outstanding infrastructures, we are exporting and investing leaders in key sectors and we a re a first-rate tourist destination. Our prices and salaries are setting the pace to get back into the track of competitiveness and, at the same time, our companies and families are bringing down their debt levels while also improving their savings reserves.
Spain's prospects, as well as being positive, are also the result of the strength of our companies which have proved to be extremely successful in the most competitive markets. The US market is a paramount example of the Spanish companies' overseas success.
Whenever our country has faced economic crises in the past decades, it has shown a great capability to prevail. I believe that this will be the case once more.
The United States is a key economic and trade partner for Spain, the largest outside the European Union. The US is the largest investor in our country, and Spain is becoming a major investor in the US, with companies in sectors such as construction, automobiles and fashion, as well as in emerging fields like biotechnology, renewable energy and services of high added value. This economic and trading relationship is very strong, and it owes largely to the support given by both Spanish and US authorities and companies. How? Well, by helping the establishment of many investment initiatives, easing and promoting foreign trade, and by fostering the presence of professionals from both countries, in each others territory.
Not far from here, for example, in Manhattan's East Side, large teams of workers are building a new subway line, side by side with technicians from a Spanish company with long experience in this field world wide. The magnificent work of that company and its personnel is good example of what truly enhances and strengthens our relationships.
Certainly, the significant presence of Spanish companies in the United States is favoured by the high degree of competition, the respect for private enterprise and the favourable business environment this great country enjoys. Neither should we overlook the important contribution made by the growing interest in Hispanic culture and the Spanish language, which is now the second language of international communication. The immense and rich cultural wealth transmitted via the Spanish language is attracting growing interest among tens of millions of US citizens.
Hemos de aprovechar por tanto este interés entre nuestras culturas, que es recíproco, para profundizar la cooperación en materia de educación superior. Se trata de fomentar los intercambios entre instituciones universitarias y la internacionalización de empresas educativas. La nueva sede de IESE en Nueva York contribuye sin duda a este objetivo. Creo que todos estamos de acuerdo en que la formación de directivos y profesionales, en concreto, tiene un inestimable valor social, empresarial y humano para el presente y el futuro progreso y bienestar de nuestras sociedades.
Profundizar en estas cuestiones es siempre importante. Hacerlo en un contexto como el del campus del IESE en Nueva York es especialmente pertinente. Desde su fundación en 1958, ha sido, en suámbito de actividad, una institución que ha servido de puente entre empresas y el sector público, entre países occidentales y emergentes, y entre Estados Unidos y Europa con unas relaciones con la Universidad de Harvard que comenzaron hace ya medio siglo. Este campus, con alumnos y profesores de todo el mundo, y el primero de una escuela de negocios europea en este gran país, simboliza también la necesidad de continuar consolidando las relaciones entre los Estados Unidos y Europa.
Termino ya mis palabras con el deseo de que esta actividad del IESE contribuya a dar a conocer una realidad educativa y empresarial española en Nueva York reforzando la presencia académica y empresarial de España en los Estados Unidos de América.
Muchas gracias.