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Spanish Government announces new measures to fight the economic slowdown
By h.b. - Aug 15, 2008 - 2:00 PM
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The Spanish Government is moving ahead with plans to spend 10 billion € on VPO assisted housing in Spain, despite the continuing economic crisis. The funding from the ICO, Official Credit Institute, has been set at 5 billion € for both 2009 and 2010. Speaking after an emergency cabinet meeting held in Madrid on Thursday despite the August holidays, the Prime Minister, José Luis Rodríguez Zapatero, admitted that the Spanish economy faced ‘a situation of stagnation’.
Figures for the second quarter of the year show that the Spanish G.D.P. grew by only a tenth of a point leaving the annual growth rate at 1.8%. The Government has noted that, at least, is higher than much of the Euro zone, and claimed that Spain continued to have a greater capacity than the rest of the economies in Europe.
The slowdown is due to a fall in internal demand, with the economy seriously affected by the increased price for crude. The Bank of Spain has said there is increased uncertainty and a growing lack of confidence.
The Government has now approved a program of 24 economic reforms which will be introduced this year and next and which will affect housing, transport, energy, telecommunications and the environment.
As well as the new assisted council housing, the Government is to give pymes small businesses easier access to credits and financing.
Other plans include the cancelling of Patrimonio tax from January 1 and new monthly returns of IVA VAT. There is a 7.8 billion € injection of cash into the economy, help for truckers, and limits on the amount of items which can be brought into the country tax-free are to be increased.
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