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Spanish PM warns 'demagoguery' threatens economic recovery

Published: 24 Feb 2015 - 05:09 pm | Last Updated: 16 Jan 2022 - 04:18 pm

 

Madrid--Prime Minister Mariano Rajoy warned Tuesday that "demagoguery" threatened Spain's economic recovery and the welfare state, ahead of a string of elections in which new parties are poised to make huge gains.

"It is not with demagoguery that we can maintain the welfare state," he said during an annual state of the nation debate in parliament, alluding to the populist rhetoric of new anti-establishment parties.

"It is dangerous to think that a social policy that is not backed by a solid economic policy is possible. It is very dangerous to think that the welfare state could be based on hypothesis or be carried out with the money of others."

Rajoy credited the austerity measures put in place by his conservative government since it took power in December 2011 for bringing down Spain's borrowing costs, avoiding a bailout and reviving the economy.

"The greatest social policy of this government was avoiding the bailout," he said.

While Spain did not receive a full sovereign bailout like Portugal, Greece and Ireland, the country took 41.4 billion euros from international creditors in 2012 to protect its whole banking sector from collapse.

It was Rajoy's last state of the nation debate before a string of polls that start in March with a regional vote in Andalucia, Spain's largest region, and culminates in general elections at the end of the year.

His Popular Party faces a stiff challenge from Podemos, a far-left anti-austerity party set up a year ago that is close to Greece's ruling Syrizia party.

Podemos, which has vowed to fight corruption and protect public services, frequently comes in first or second place, ahead of the main opposition Socialists, in opinion polls.

Polls also show that Ciudadanos, a centre-right party which defends national unity and also rallies against corruption and high unemployment, is rapidly gaining ground.

Both parties do not have any seats in parliament but are expected to do well in the next general election, putting an end to Spain's traditional bipartisanship.

afp