“I'm going to air out for a while”. That phrase, which seems banal, was pronounced by Pedro Sánchez in March 2022 during a European Council summit in which the 'classification' of the Iberian Peninsula as an “energy island” was discussed.. The President of the Government left the room as a measure of pressure and, hours later, he left Brussels with the goal of the Iberian exception to reduce the electricity bill, runaway as a result of the Russian invasion of Ukraine. That was for many a goal for the entire squad, but as the 23-J elections approach, it is convenient to have a complete map of what the Executive has done (and what not) in the field of the EU.
And it is that surely the Iberian exception is what the Government has sold the most to hype and cymbal during this legislature. The objective was for Spain and Portugal to be considered apart when it comes to managing the energy crisis, in such a way that the citizens of both countries would pay less for the electricity bill.. It directly consists of limiting the price of natural gas used in the production of electricity to alleviate the consequences of the escalation of energy prices in the electricity 'pool' after the outbreak of the conflict in Ukraine. Just a few weeks ago, Brussels agreed to extend its validity until December 31, 2023.
At the time, Moncloa already defined the measure as “exceptional, temporary, which does not imply subsidizing gas, does not distort the incentives set from Europe for renewable energies or the flows of electricity between countries”. However, now Sánchez's aspiration – if he continues to lead the Government after 23-J – is to achieve a structural reform of the electricity market, in such a way that this “exception” can become the norm throughout the EU. The debate is open, but the friction between the 27 continues, as has been seen this week at the summit of ministers in Luxembourg.
Another important issue in which Spain has sought leadership. The limits of 60% of public debt and 3% of GDP “have become obsolete since the pandemic”, according to several sources. It is an argument already known in Brussels, and the Member States have already opened the melon for its reform; Madrid, through the first vice president, Nadia Calviño, wants to set the pace, and has the endorsement of the German Finance Minister, Christian Lindner, who said he “trusted” her to carry out the changes. However, the most orthodox visions such as the German or the Dutch collide again with the more 'softer' ones, which coincide with the countries of the south.
On the table is the Commission's proposal, which the Spanish government is not entirely convinced. Brussels wants greater flexibility and rules adapted to the particularities of each Member State, but in exchange suggests sanctions in case of non-compliance. These fines, which already exist but are not applied, would be minor but would be applied automatically. The Commission would present a reference fiscal adjustment path, which would cover a period of four years. However, that four-year period can be reduced to three in the case of economies with “moderate” debt while those with a “low” level will not have to make any adjustments.
Beyond this and although it falls further back in time, Spain also scored another goal with the post-Covid recovery fund. Aid for a total of 750,000 million euros between loans and subsidies had the invaluable endorsement of Germany and France, but the first capitals that spoke of this possibility were Madrid and Rome.. They broke the taboo of joint debt issuance and, furthermore, Spain and Italy have ended up as the most benefited partners.
So what is the balance? Iratxe García, president of the group of Socialists and Democrats (S&D) in the European Parliament, comments to 20minutos that “it is indisputable how Spain has once again returned to Europe assuming a leading role in decision-making, especially in a legislature that has not been very normal to say”. For García, in fact, the two key issues in these years have been “the Government as one of the great promoters of the Covid recovery fund, to respond to the crisis in a different way”. The MEP is clear that “if this time it has not resembled that of 2008, it has been because of the leading role of Pedro Sánchez”.
“This proposal has been combined in all the institutions, but also due to the good cooperation between the Government of Spain and the Commission”, he continues.. And it would also focus “on the response to the energy crisis” with a commitment “to a model based on sustainability”. He gives the example of the Iberian exception, which “can become a reality throughout Europe, and that proposal comes from Spain.”
For her part, Dolors Montserrat, spokesperson for the PP in the European Parliament, maintains that the Sánchez government “has not been up to the task” in a scenario in which Europe “has complied”.. For the ex-minister, the management of the Executive “has been deficient in many aspects” and gives as an example that European funds “are not reaching the citizens”. In addition, he emphasized the division between PSOE and Podemos in relation to the war in Ukraine.
Eva Poptcheva, MEP for Ciudadanos, points out that “political leadership has been lacking, and it is something that we have been demanding” since the beginning of the European legislature. “It is strange that Spain, being one of the most important economies in the EU, is not having a role in thinking about Europe, let's say, thinking about where we have to go, something that Germany or France do a lot,” he continued.
The MEP wants to clarify some of the most important issues. “The issue of the Iberian exception is not political leadership, because in Brussels it was perceived as a way of looking for a way out,” he develops.. “In Spain it is sold as a panacea, but in Brussels it is not seen that way at all”, but rather as a form of individualism on the part of Madrid and Lisbon.
Although not all the issues are the same, in the opinion of Poptcheva. “With the issue of fiscal rules, I do believe that this leadership has been seen, with Calviño together with the Government of the Netherlands. That leadership was exercised there”, but the problem is that, he comments, “it is difficult to sustain that leadership when there is a lack of credibility because that reform is proposed by a government that has done nothing for fiscal consolidation.”
And after all, Spain reaches a presidency of the Council decaffeinated by the elections of 23-J. On this, Iratxe García assures that “we need a strong presidency to be able to move these issues forward and in fact there is a lot of expectation about it, on issues such as the Law for the Restoration of Nature”. For this, the S&D leader is clear that Spain has to have “a strong government” and the current circumstances, “with an opposition and a right that doubts the legitimacy of the Executive, made elections necessary.”
“I think that an opportunity is being lost with the presidency of the Council and the general elections coinciding in time,” considers Poptcheva for her part.. Although not pessimistic. “It is also necessary to know that the presidency of the Council has as a key element the Permanent Representation, and the Spanish one is very, very good. I see a certain continuity there,” he clarifies, but asks that the Reper be allowed to work. “If that part is not touched, I think the presidency can go well”, although he does not rule out that the new Executive “wants to give some coups”, which would have a negative consequence in this regard.
The Spanish presidency of the Council was going to move with great fanfare, with an informal summit of leaders in La Alhambra and ministerial meetings in all the autonomous communities. The agenda will be altered as little as possible, but in the end it will be affected by the electoral call. There are voices that are even talking about a possible international career for Pedro Sánchez, especially if the Government does not revalidate. It has sounded to replace Jens Stoltenberg as Secretary General of NATO, but his name is losing steam in the pools. So who knows if his future is in Brussels; to his credit, a sheet of pros and cons after four years sitting in Moncloa.