Economic Crisis: 8 billion of stimulus package focuses on infrastructure projects by local councils
November 28, 2008
Prime Minister José Luis Rodríguez Zapatero on Thursday unveiled an 11-billion stimulus package aimed at reviving the country’s flagging economy and preventing unemployment from spiraling out of control. Arguing that the world may be on the brink of “the first global recession since WorldWar II,” Za patero told lawmakers in Congress that he will spend the equivalent of 1.1 percent of Spain’s GDP to stimulate economic and jobs growth. Most of that money — a total of 8 billion — will be spent on new infrastructure projects by local councils, with works expected to begin early next year. The remainder will be spent on propping up the struggling auto sector, financing environmental initiatives, increasing research and development spending and promoting the tourism industry. “The government is conscious of the need for this [stimulus] to be applied rapidly,” Zapatero noted. “A crisis as quick and intense as this one is without precedent.” The global economic down-turn has hit Spain particularly hard on the back of a crash in the construction and real estate sectors that has caused thousands to lose their jobs. The prime minister said he hoped the stimulus package would lead to 300,000 jobs being created next year. Spain’s unemployment rate hit 11.3 in the third quarter — the highest level in the 27-nation European Union — while the economy contracted by 0.2 percent.
Source: El Pais International Edition
