Upon her return from her investment mission to Italy and Spain, President Gloria Macapagal-Arroyo will issue an Executive Order eliminating kinks in the processing of investment proposals, Favila said.

The President assured investors that henceforth they will deal only with DTI to speed up investment transactions with the government.

Favila said they had a very candid exchange of views with the European investors, and that almost to a man European businessmen who plan to invest in the Philippines complain that it takes too long for too many different offices to act on their investment applications.

For businessmen, time is of the essence, delays cost money, he said. "All an investor wants is to be told if his application is okay or not and not to be made to wait for an answer for an indeterminate period," he added.

The DTI secretary also said another complaint concerns overlapping and unnecessary fees. He said he was told by the investors that no less than 22 offices were collecting certain fees from investment applicants.

He said, however, that he was informed by Finance Secretary Margarito Teves that the review of the policy on the fees has been completed and charges not mandated by law will be eliminated.

Favila also said that as a first step, all concerned agencies will be required to submit an inventory of all investment proposals pending in their respective offices and to inform the proponents, wherever they are, about the status of their proposals.

Those responsible for delays in the processing of business applications will be held accountable, he said.

In an interview with newsmen covering President Gloria Macapagal-Arroyo’s investment mission to Europe, Favila said European businessmen brought up the issue of adverse publicity of conditions in the Philippines during candid discussions of investment possibilities in the country.

Investors said they read Philippine newspapers and "sometimes there are newspaper reports that raise concern," Favila said.

He said investors are wondering why Filipinos as a community cannot help one another and project a favorable image of the country instead of flagellating themselves.

Favila cited a report in a Philippine daily that made a big fuss over an unverified incident involving missing towels in Rome during the President’s visit to Italy.

The towels were allegedly stolen from a hotel occupied by an unidentified individual, supposedly a member of the presidential party to Italy.

Favila also said the Philippines, which finds itself on the wrong end of the two countries’ trade imbalance, is seeking greater parity in its two-way trade with Madrid.

For the period 2001-2005, the balance of trade had been consistently in favor of Spain, with the Philippines experiencing the highest deficit at $46 million in 2004.

The DTI secretary said that last year, Spain was the Philippines’ 32^nd trading partner, accounting for only 0.18 percent or $154.8 million of the country’s total world trade of $86 billion.

As an export market, Spain accounted for only 0.09 percent or $36.9 million of total Philippine exports of $41 billion in 2005.

Also in 2005, Philippine exports to Spain contracted by $68 million from $106 million compared to that of 2004 as a result of the substantial decline in Philippine exports of portable digital automatic data processing machines from $31 million in 2004 to a mere $840,000 in 2005.

"Truly, you are the new heroes of the Philippines," the Chief Executive said in her speech before members of the Filipino community at the Centro Cultural de Conde Duque Auditorium here. The President’s meeting with the Filipino community coincided with the commemoration Friday (June 30) of the Philippines-Spanish Friendship Day.

The President cited the thousands of Filipinos working here for their dedication and loyalty, their affection for and solidarity with the Spanish society. She also thanked the Spanish people for generously accepting the Filipinos in their midst.

"We are proud of our Filipino workers and count them among the hardest working, most adaptable and most congenial of work forces anywhere in the world," she said.

The Chief Executive said the OFWs in Spain represent a strong pillar of support for the bilateral understanding between Spain and the Philippines.

"I find the participatory presence of Filipino workers in Spain most mutually rewarding, which contributes to the better understanding and greater awareness between our peoples," she added.

She expressed the hope that the solid personal, historic and cultural bonds between the Philippines and Spain will lead to a more pronounced growth of the economic and commercial cooperation between the two countries.

The President said she would be bringing with her wonderful memories about the achievements of the OFWs in Spain when she returns to Manila and hopes that the celebration of the Spanish-Philippine Friendship Day will be a constant reminder of the mutual friendship and affection between the Philippines and Spain.

Before her speech, the President received a manifesto of support from the Filipino community and presented awards to outstanding Filipinos in Spain.

Relations between the Philippines and Spain have continued to improve since the establishment of diplomatic relations on September 27, 1947. These relations have been reinforced through the signing of a new comprehensive Treaty of Friendship and Cooperation in June 2000.

These agreements have provided a renewed sense of Philippines-Spain relations in the new millennium marked by developments in information and communications technology, increasing environmental and humanitarian concerns and the move towards globalization.

In his speech at the luncheon he offered in honor of President Gloria Macapagal-Arroyo last night at the Royal Palace, the King said his several visits to the Philippines had deepened his "feelings of affection and admiration for the Philippines, and its people, always hospitable and hardworking."

He expressed "particular satisfaction" in hosting the luncheon on the "30^th of June, the date when you are celebrating Philippine-Spanish Friendship Day."

"A better day could not have been chosen to commemorate a friendship as solid as that between Spain and the Philippines; one which, with your visit, we are resolved to promote even further," he said.

The King also paid special tribute to the abolition of the death penalty law in the Philippines which the President signed on June 24, his feast day.

He thanked the President for the gesture of declaring three days of mourning in the Philippines after the terrorist attacks in Madrid on March 11, 2004 which killed a number of people.

"The intensity of our common history, of this current understanding and mutual sympathy that flows between Filipinos and Spaniards, as well as the dynamic nature of our societies today – all these factors form a solid basis for this conviction that together, and in every field, we should consolidate, expand, and further promote our relations," he said.

The King also called for the promotion of the Spanish language in the Philippines as a major vehicle for international communication. He said that Spanish, which has deep roots in the Philippines, is spoken by more than 400 million people worldwide and is in "growing demand in Europe and North America, where it is now the second most widely spoken language."

In her response, President Arroyo thanked their Majesties, King Juan Carlos and Queen Sofia for their kind invitation, and for the support that Spain has extended to her government during the "most difficult times."

"I appreciate very much Spain’s initiative in the European Union, for the ambassadors of the EU to issue a declaration praising our efforts" on the abolition of the death penalty in the Philippines.

She cited Spain’s profound influence on the Filipinos—in "our religion and in our culture—that it evokes a sense of kinship and gratitude in our hearts. In the present time, thousands of Filipinos have chosen to work in Spain. Their presence also contributes to a better understanding and greater awareness between our peoples."

The President said they agreed that the ties that bind the Philippines and Spain should translate to a wider cooperation in the field of trade.

"With the strategic location of the Philippines vis-ā-vis the big economies in Asia, we offer to collaborate with Spain in order that the Philippines can be its regional base from which to access the region. We also hope that Spanish businesses will invest more in the Philippines, particularly in tourism, energy and infrastructure," she said.

The Chief Executive said that coming to Spain "brings many memories of the time when I came here with my mother and my father, the erstwhile President Diosdado Macapagal, when he made a State Visit in 1962. I thank you, Your Majesty, for your kind gesture of giving me yesterday a DVD of that visit. I also have fond memories of the time when Your Majesties visited the Philippines as newly-weds, during the presidency of my father."

The Chief Executive made this statement during the dinner hosted by the Spanish leader in her honor Thursday night, the eve of the celebration of the Philippines-Spanish Friendship Day at the Palacio de la Moncloa here.

The Philippines-Spanish Friendship Day is celebrated every June 30.

"I commend Spain for its technical and financial cooperation projects carried out through La Agencia Espana de Cooperacion Internacional," the President said.

She cited in particular the Instituto Oftalmologico Jose Rizal at the Philippine General Hospital in Manila which was inaugurated by Secretary of State for International Cooperation Leire Pajin during her visit to the Philippines last June 14-15.

The President expressed hope that cooperation projects that will be established as a result of her two-day official visit to Spain would boost commercial cooperation, investments, and pave the way for further artistic-cultural exchanges between Spain and the Philippines.

She noted the three words that best capture her visit to the kingdom, namely, life, solidarity, and prosperity.

Life, the President said, because last June 24, the feast day of His Majesty King Juan Carlos I, she signed into law the abolition of the death penalty.

"Solidarity, because Spain has played a major role in our history," she said.

Prosperity, the President added, because thousands of Filipinos have come to Spain to work, and whose presence has contributed to the increased knowledge and understanding between the two peoples.

According to the President, of all the countries in Europe, Spain has the deepest ties with the Philippines. "Moreover, it is your government, Mr. President, that has always understood and defended our principles on which we want to build our strong Republic," she said.

The President told the Spanish leader of her desire to initiate Philippine-Spanish cooperation on the promotion of human rights.

"We are proud of our Filipino workers and I find their participatory presence most mutually rewarding, which contributes to better understanding and greater awareness between our two peoples," the President said.

The Chief Executive and members of her official delegation are scheduled to arrive from Madrid at about 8 a.m. at Villamor Air Base in Pasay City.

She is expected to deliver an arrival statement on the fruitful results of her visits designed to boost trade, investment, tourism, labor and other aspects of diplomatic relations between the Philippines and three of its major partners in Europe.

Leaving Manila on June 25, the President first visited the Vatican City where she had a private audience with his Holiness Pope Benedict XVI at the Apostolic Palace at St. Peter’s Square on Monday morning. It was the first meeting between the President and the Pope.

In the exchange of gifts during their meeting, the President presented her host with a hard-bound copy of Republic Act No. 9346 abolishing the death penalty in the Philippines.

President Arroyo signed the new law on the eve of her departure for Rome.

In accepting the President’s gift together with an image of the Nuestra Seņora de Guia, the Pontiff expressed his appreciation for the scrapping of the capital punishment in the Philippines, saying the move was "well done."

For his part, Pope Benedict gave the President a religious book and other mementoes of the Vatican.

While in the Vatican, President Arroyo also had a meeting with Cardinal Angelo Sodano, secretary of State of the Vatican.

She also visited the Crypt of Pope John Paul II at the ground level of the old St. Peter’s Basilica to pay homage to the late Pontiff who visited the Philippines twice –first in 1981 and again in 1995.

Before departing for Spain, President Arroyo also met with Italian President Giorgio Napolitano at Palazzo del Quirinale and Prime Minister Romano Prodi at Palazzo Chigi.

The President’s official visit to Italy has raised hopes for an early agreement with the Italian government on three pending proposals that would raise the threshold of social protection and other benefits for the more than 80,000 documented Filipino expatriates in that country.

The three pending proposals are the Philippines-Italy Social Security Agreement, RP-Italy Memorandum of Understanding on the Automatic Conversion of Driver’s Licenses, and RP-Italy Memorandum of Understanding in the Field of Agricultural Science and Technology and Promotion of Agricultural Trade.

Prime Minister Prodi assured President Arroyo that his government would seriously consider the Philippine proposals.

From Italy, the President proceeded to Madrid for a series of meetings with top Spanish officials and leading Iberian businessmen in a bid to bolster economic, diplomatic and labor relations between the Philippines and Spain.

Topping the list of her engagements on Day One of her Madrid visit was the President’s meeting with King Juan Carlos I at the Palacio de la Zarzuela, which was followed by a similar meeting with President Jose Luis Rodriguez Zapatero at the Palacio de la Moncloa.

The President said the three words that best described her official visit to Spain were "life, solidarity, and prosperity."

Life, the President said, because last June 24, the feast day of His Majesty King Juan Carlos I, she signed into law the abolition of the death penalty.

"Solidarity, because Spain has played a major role in our history," she said.

Prosperity, the President added, because thousands of Filipinos have come to Spain to work, and whose presence has contributed to the increased knowledge and understanding between the two peoples.

On June 29, the Philippines and Spain signed a memorandum of understanding (MOU) that will open the doors for the entry into Spain of Filipino professionals and skilled workers.

Outgoing Labor and Employment Secretary Patricia Sto. Tomas signed the agreement for the Philippine government, while Spanish Minister for Labor and Immigration Jose Caldera signed for Spain.

Sto. Tomas said the agreement would initially benefit up to 100,000 Fiipino health care workers under a pilot project arrangement.