The ambitious plan, called "Trade Response and Recovery," will mobilize the considerable sum of €14.100 billion with the aim of protecting Spanish companies and workers from the adverse effects of the new tariffs and, at the same time, boosting the market diversification and strengthen the country's international competitiveness.
The decision of the Executive led by Pedro Sánchez comes at a time of growing concern in the Spanish business sector regarding the protectionist trade policy of the US administration. The increase in tariffs on key products threatens to negatively impact the exports, production and employment in various strategic sectors of the national economy.
The Minister of Economy, Commerce and Business, Charles Body, was in charge of detailing the main lines of this shock plan during the press conference after the Council of MinistersWith a tone that sought to convey both serenity and resolve, the minister emphasized the need to act swiftly and decisively to mitigate potential damage and lay the groundwork for a more resilient commercial future.
The plan includes a new line of guarantees worth €5.000 billion through the Official Credit Institute to guarantee financing for companies, both exporters and importers, affected by the change in U.S. tariff policy.
“Today we are taking a firm and decisive step in protecting our economic interests and supporting our businesses and workers,” declared Minister Cuerpo. “This Trade Response and Relaunch Plan is a comprehensive tool that will allow us to face this challenge with unity and determination, strengthening our productive capacity, boosting our presence in alternative markets, and guaranteeing a safety net for those who may be most affected by this international situation.”
The plan is structured around two main axes: a short-term protection network and a strategy for reconversion and internationalization In the medium term, the first seeks to offer immediate relief to companies facing liquidity problems or a significant decrease in orders as a direct consequence of US tariffs. The second, with a more strategic vision, focuses on providing Spanish companies with the necessary tools to adapt to a changing global trade scenario, strengthening their presence in emerging markets and diversifying their operations. export portfolios.
Among the specific measures that are activated immediately through the Royal decree law, highlights the creation of a new line of guarantees worth 5.000 billion euros managed by the Official Credit Institute (ICO). This line will be intended to guarantee the financing of companies, both exporters and importers, that are harmed by the new United States tariff policy, as well as to support possible industrial reconversion processes that may be necessary.
"This injection of liquidity through ICO guarantees is essential for our companies to maintain their activity, cope with potential financial strains and explore new opportunities without being strangled by uncertainty," the minister explained.
The Government has also decided significantly strengthen the Fund for the Internationalization of Business, increasing its budget to €700 million. This increase in resources will allow for greater support for companies seeking to strengthen their international presence and diversify their exports, thereby reducing their dependence on the US market.
“Market diversification is a strategic priority right now,” emphasized Carlos Cuerpo. “This boost to the Internationalization Fund will provide our companies with the necessary impetus to explore new opportunities in regions with high growth potential.”
Another key measure announced by the minister is the Expansion of the coverage offered by the Spanish Export Credit Insurance Company (CESCE)The maximum coverage limit will be increased from €9.000 billion to €15.000 billion, allowing for the immediate mobilization of €2.000 billion in coverage for international projects that may be affected by the new tariffs.
"The expansion of CESCE's coverage offers greater security to our companies when tackling new markets and international projects in a context of commercial uncertainty," the Minister of Economy stated.
Minister Cuerpo also emphasized the importance of dialogue and collaboration for the effective implementation of this plan. In this regard, he called on the social agents, all affected sectors, parliamentary groups and autonomous communities to maintain a constructive dialogue to adjust the response based on the evolution of events.
“We want this to be a true national plan, a plan for the country built by everyone,” the minister stated. “The situation is uncertain and dynamic, so it is essential to maintain constant dialogue to adapt our response to the new circumstances.”
Regarding the response at the European level, Carlos Cuerpo emphasized that Spain's relationship with the United States is strategic and must be protected and improved. In this sense, the Spanish government is extending "a hand to the American authorities to reach an agreed solution"and fully supports the European Commission's efforts in this task."
The minister also referred to the recent meeting of the Foreign Affairs and Trade Council in Luxembourg, where the need to expand the network of strategic business partners and to ratify the agreement with Mercosur as a way to reduce the impact of the possible closure of the North American market by diversifying exports.
Furthermore, Spain proposed at this forum that potential revenues raised from tariffs the European Union could impose on US products as a countermeasure be used to support European sectors, companies, and workers affected by US tariff measures.
Finally, the Government spokesperson, Pillar Joy, briefly introduced a change of subject to remind of the president's imminent official trip Pedro Sánchez to Vietnam and China. He explained that this trip, in which the president will be accompanied by the ministers of Foreign Affairs, Jose Manuel Albares, and Agriculture, Fisheries and Food, louis planesIts fundamental objective is "to continue advancing in the commercial relaunch of our products, diversify markets and strengthen economic, political and cultural relations with these two countries."
"The president has emphasized in recent days the need to strengthen Spain's strategic autonomy, which involves diversifying our relationships," the spokesperson concluded, in a message that resonated with the market diversification strategy that underpins the recently announced Trade Response and Recovery Plan.
Any questions about this news?
Talk to Coexia, the AI of the foreign trade
