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Spain unveils economic stimulus plan


Madrid : The Spanish government is working on a $14-billion rescue package aimed at generating jobs and stimulating the economy.

Prime Minister Jose Luis Rodriguez Zapatero told parliament Thursday the new “urgent” measures were intended to mitigate the effects of the global financial crisis and create up to 300,000 new jobs, EFE reported Friday.

The prime minister said the rescue package – equivalent to one percent of the country’s gross domestic product (GDP) would be raised from a special credit, adding that $800 million would be earmarked for the automobile industry which has been worst-hit in the global market crunch.

The Spanish economy shrank 0.2 percent in the third quarter of this year compared to the previous three-month period amid the collapse of the country’s construction sector.

It was the first time Spain’s economy has contracted since 1993 and now faces recession.