"We will not be naive": Body guarantees protection for industry against possible tariffs

The Minister of Economy, Carlos Cuerpo, has taken advantage of his visit to Barcelona, ​​​​in the framework of the Mobile World Congress (MWC) this Wednesday, to send a message of reassurance in case the US government of Donald Trump approves new tariffs: "From Europe and Spain we will not be naive; a," he said.

However, Cuerpo called for "prudence" as it recalled that they are in a moment of negotiation and trying to reach some understanding with the United States because they are "convinced" that any type of protectionist measure is "harmful" both for those who impose it and for those who receive it.

Asked what effect this situation may have on interest rates, Cuerpo recalled that we will have to wait to see how these measures are implemented, as well as the decisions that are taken this week at the ECB meeting. However, he assured that he "would be calm in this regard," and recalled that Europe "must focus on continuing to advance in integration" and also on negotiating agreements with regions that allow them to sell their products and be competitive, such as Mercosur, the minister said.

"We are aware of the potential of the single market in Europe," said Cuerpo, and cited an IMF study: "If we take advantage of the 450 million consumers that exist in Europe, in terms of the exchange of goods, it would be the equivalent of a 45% reduction in our tariffs."

Consolidation of the 'telecos'

Cuerpo also referred to the consolidation process in the European telecommunications sector, as mentioned by Marc Murtra, President of Telefónica and advisor to the GSMA, among others. According to the minister, this requires prior integration of the 27 markets of the European Union (EU) so that companies can gain the scale they aspire to. "It is essential [...] that the relevant market for these large companies in these sectors is the European market. We must be able to integrate the 27 markets well so that companies can have access, precisely, to this scale; this is essential, beyond, of course, any concentration processes that may exist," the minister pointed out.

"There cannot be a concentration process between different operators if we do not have a relevant market that is broader than the domestic or national one," he added. According to Cuerpo, this integration will lead to the creation of "large European players" that will be able to compete internationally with the world's leading companies.

Marc Murtra already highlighted on Monday, at the opening conference of Mobile, the need for the European Union to make its regulations more flexible to facilitate the consolidation of the telecommunications sector. A position that coincides with the will of the Spanish government, which owns 10% of Telefónica through the Sociedad Estatal de Participaciones Industriales (SEPI).

Like the telecom In Spain, the main European operators have repeatedly stressed that the market in Europe is too fragmented, with three or four companies competing in each EU country. This contrasts with the reality of other regions, such as the United States or China, with a larger population and where the number of relevant players is reduced to three or four in total.