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11/25/08

Guardian.co.uk: Spain to present 2-yr plan to boost demand

For the complete report from the guardian.co.uk click on this link

Spain to present 2-yr plan to boost demand

Spain's government will present a two-year plan on Thursday to boost demand in the country's flagging economy, the prime minister said on Tuesday. The measures would be aimed primarily at 2009 and 2010, Jose Luis Rodriguez Zapatero told a forum organized by The Economist magazine in Madrid. He also said any breaches of the European Union's Stability Pact should be temporary. His comments came after he said last week that Spain will exceed the European Union budget deficit limit of 3 percent as it spends more to tackle the economic crisis. Last week, an OECD survey said Spain's economy would contract in 2009 due to falls in house building and consumer spending and would make a slow recovery in 2010 as financial turmoil recedes and world growth resumes.

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