Spanish Prime Minister Pedro Sanchez Talks ECB Succession

SPEAKER_1 (0:02)

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SPEAKER_2 (0:07)

Right now we do have one of the global leaders that is in town sitting down with a member of our Bloomberg community.

SPEAKER_3 (0:14)

Yeah, high level meetings of the UN General Assembly continue this week, bringing global leaders to New York City and to Bloomberg World Headquarters. Right now in our New York studio, Bloomberg's Francine Lacqua sitting down with the Prime Minister of Spain, Pedro Sanchez.

Francine Lacqua (0:26)

Yeah, thank you both. We're delighted to be joined by the Prime Minister of Spain, Mr. Pedro Sanchez. Thank you so much for joining us here at Bloomberg Global Headquarters. Now it's been about two months since the mass arrival in Ceuta. Beyond what has circulated on social media, do you now know whether any state or organization facilitated what you called an attack on Spanish sovereignty?

Pedro Sanchez (0:48)

We're still investigating what happened those days, but there's some certainties. The first one is the economic gap between one side of the border and the other side of the border between Morocco and Spain. Second, the use of social media to expand misinformation about the situation in Spain and Ceuta. And last but not least, a border control mechanism that has to be improved by both sides, of course Spain and of course Morocco. And with Morocco, we have a great relationship.

We cooperate on many issues, not only economically, but also fighting against terrorism and of course fighting against smugglers and irregular migration.

So we have a very positive cooperation. We have asked for answers and also for actions, and they are certainly taking those actions.

Francine Lacqua (1:46)

Prime Minister, there's also a shift, right? That's more towards the right in a lot of European countries. How do you explain that?

Pedro Sanchez (1:53)

Well, I think that the far right feeds from legitimate anxieties of our societies. Inequality, I would say, is the main driver.

The point here is that when they start to win elections and be in government, the change is from anger to disappointment. And this is what we are witnessing, for instance, in the last elections in Sweden, where the far right decrease its electoral support. So all in all, I think that the expansion of the far right in some countries, when they are in government, after four years, the people realize that they don't deliver for the ordinary people. And I think that the challenge that we have from centrist parties, centri-right, centri-left parties, is to deliver, especially when it comes to inequality.

Francine Lacqua (2:51)

Is it a messaging problem or is it a policies problem? I also know that European leaders will discuss next month the trade deficit with China. How much of that will help?

SPEAKER_1 (2:59)

How would you deal with China today?

Pedro Sanchez (3:00)

It will be a hot topic, no? Because of course, trade deficit, especially when it comes to European Union, it is increasing last year, also this year. So it's going to be a hot topic. We are about to begin this trade talks with the Chinese government. From the Spanish perspective, and this is what I'm always defending around the European Council table is, okay, we need to cooperate with China because we have common challenges, such as climate change or AI technology.

Second, we need also to manage our differences. And precisely when it comes to trade deficit, I think it's so massive that it's not possible to absorb from the European economy. And that is why I think it's very important to manage this difference and to try to reach an agreement with the Chinese government.

Francine Lacqua (3:54)

Do you think you'll have a concrete agreement, or is there anything that Europe needs to do today to really reduce the dependency on China?

Pedro Sanchez (4:01)

We need to reduce our dependency on China. We need also to reduce or rebalance our dependencies towards other economies, such as the US. And that is why I think it's very interesting what is going on in Brussels when it comes to our trade agreements, for instance, with Mercosur, with India, with Australia, with Indonesia and so on and so forth. I think one of the main strengths that we have in the European Union is our, you know, willingness to open our economies and to reach with other regions or other countries on economics, trade, investment and so on and so forth.

Francine Lacqua (4:40)

I mean, economically, it's tough because of the energy crisis. I mean, you've had good numbers in Spain.

Pedro Sanchez (4:44)

Yeah, well, I think this is the situation. Unfortunately, the war in Iran, again, the war in Ukraine is affecting all of us. That is why, you know, I don't understand why we are having this terrible war in Iran. Why don't we close this chapter? Why don't we try to establish a diplomatic relationship between the both sides?