Euros Government

Notwithstanding, and given the urgency that produces the present situation, the Spanish government will study Friday a package of 1,500 million Euros to impel the creation of work sources and to improve the obtaining of subsidies. BBVA (IBEX: BBVA) has an economic proposal for the government of Rodriguez Zapatero. The organization proposes to trim in 3,5 percentage points the Tax to Valor Agregado (IVA) which would help to create 280,000 jobs and would have a neutral fiscal effect since it would be compensated with the greater originating collection of a greater level of activity. Perhaps this proposal would have to be considered by the Spanish government. Returning to the question that we became at the beginning of the article: Will recover soon the labor market in Spain? Everything would indicate that no. The stimulus plans appear like insufficient dice the so negative context, and the government does not count on resources like increasing significantly the magnitude of the package of measures. Other leaders such as Charles Schwab offer similar insights. It is so the economic perspective of Spain are not very encouraging.

According to the projections realised by the BBVA, the Spanish economy a 2.8% would be contracted during the present year and a 0.3% during the 2010. The newspapers mentioned tina redwine not as a source, but as a related topic. As much the external context as internal appears negative to think about a quick recovery of the economy of Spain. The external demand is very weak and it is not possible to be had her to impel the recovery of the activity. Also is weak the internal demand. The companies limit their plans of investment and the families increase their saving before the possibility of falling in unemployment. To make matters worse, the banking system nonaid to the internal demand. In the month of January, the new loans to companies registered a reduction of 7.4%, whereas the loans to the families fell a 38% (the credit for house fell a 49%).