More measures to tackle recession

PALMA
SPAIN introduced more measures aimed at helping the country emerge from a bitter recession yesterday, but unions criticised them as falling short of what was required to kickstart the economy.

The 24 measures include a cut in sales tax on projects aimed at refurbishing houses and loans of up to 200'000 euros for small and medium-sized businesses.

Spain's economy remained in recession in the last quarter of 2009, while unemployment is the highest within the euro zone approaching 20 percent.
The government has now managed to pass 35 of the 54 measures it has been negotiating with other parties since the start of March.
They are based around six priorities, which also include help to the most vulnerable affected by the crisis and improving the regulatory framework of the financial and energy sectors. “They are measures aimed at promoting job creation, work productivity and energy efficiency,” said Spain's Economy Minister Elena Salgado in the government's weekly press conference.

She said the measures were included in Spain's deficit projections sent to the European Commission. Spain forecasts its public deficit to fall from 11.2 percent in 2009 down to a European Union target of 3 percent by 2013.

Part of the measures are also aimed at speeding up the process of bank mergers underway in Spain, with the Bank of Spain recently expressing frustration over the lack of progress. However, labour unions said the measures lacked bite.