Source :investinSpain.org
The US ambassador in Madrid, Alan D. Solomont, addressed some 40 US multinationals to explain the real situation in Spain and highlight the country's investment opportunities. Those in the know state that he took the opportunity to support the reforms in the financial sector and the austerity measures put in place as a result of the crisis.
The conference was organised by the US Chamber of Commerce in Spain, chaired by Jaime Malet, and was attended by giants such as General Electric, McKinsey, Abbot, Lilly, Citibank, IBM, Pfizer, United and American Airlines, Xerox, Pepsico, Warner and Nike, to name a few. Spanish firms with interests in the USA, such as Iberdrola or Repsol, were also there.
“It is easy to focus on negative images, and there is no denying that Spain faces some significant challenges. But I think that we can highlight these challenges while emphasising the country's strengths. The central government is negotiating sensible financial reforms with the EU. And the regional governments are working hard to manage with waning budgets," assured Solomont in his opening speech. In response to the companies' questions, he reminded them that Spain has reduced the number of its financial entities from 50 to 15 in just two or three years, and has avoided any imminent danger of the system collapsing.
Solomont justified the tax hikes based on the need to correct the deficit problem and made it clear that the government has voiced its intention to bring them back down once the situation normalises. “I believe that Spain's leaders are working hard to balance fiscal responsibility with the need for wide-ranging reforms in the economy, while at the same time preserving the social security network. But it will take time for the reforms to render visible results in terms of growth and job creation," he stressed.
In the same vein, he pointed out that important investment opportunities are emerging in Spain, given the fall in asset prices. “The country has a dense network of small and medium businesses in a variety of leading sectors that are gaining productivity and access to international markets. The private sector has quickened the pace of its deleveraging process. And the prices of all kinds of assets have fallen to levels of seven or eight years ago, so foreign investment is beginning to return," he concluded.
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"Where is Manolo?", Benidorm, Valencia, East of Spain, by Reina Cañí, at flickr.com