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Spanish PM Plans To Create 800,000 Jobs To Boost Economy Spain News

Spain’s Prime Minister Pedro Sanchez has unveiled plans to create thousands of new jobs over the next three years courtesy of the EU recovery fund.

With over €140 billion of the EU recovery fund earmarked for Spain, the Prime Minister announced his plans on Wednesday to kick-start the Spanish economy.

The recovery plan will focus primarily on transitioning to greener energy and a digital economy with around 70% of the aid allocated to related projects.

Mr Sanchez said the money would be invested so that it would accelerate the transformation of the Spanish economy with the intention to grow GDP by 2.5%.

The pandemic requires the acceleration of change that was already needed,” said the Prime Minister in an hour-long presentation of the government’s economic recovery plan.

The funding is expected to be spent between now and 2026. However, €27 billion of the first €72 billion which will be invested by 2022, will look to create around 800,000 new jobs.

Around 37% of the fund will be allocated to the country’s ecological transition with another 33% committed to Spain’s digital transformation, in line with the European Commission’s objectives.

Prime Minister Sanchez said, "It is not just a question of recovering the GDP that the pandemic has taken from us, it is a question of growing in a new more sustainable way”.

A drop in GDP and increase in unemployment is predicted

The news comes as Spain’s central bank downgraded the country’s economic outlook for 2020 predicting that GDP (Gross Domestic Product) could fall as much as 12.6%.

Despite Spain being Europe’s fourth-largest economy, unemployment has rocketed since the pandemic began in March. The Bank of Spain predicts that unemployment could potentially rise to 22.1% next year.

The recent health crisis and its imposed national and regional lockdowns have had a major impact on the Spanish economy. The country’s tourism industry which accounts for more than 12% of Spain’s GDP has also been decimated.

Spain opened its doors to European tourists again in June, however, any plans at stimulating the economy were short-lived after the UK announced that it would end their travel corridor arrangements due to a spike in Coronavirus cases.

Around 22 Schengen countries have also advised its citizens against travel to Spain placing further pressure on the country’s tourism sector.

Spain’s Prime Minister Pedro Sanchez has unveiled plans to create thousands of new jobs over the next three years courtesy of the EU recovery fund.

With over €140 billion of the EU recovery fund earmarked for Spain, the Prime Minister announced his plans on Wednesday to kick-start the Spanish economy.

The recovery plan will focus primarily on transitioning to greener energy and a digital economy with around 70% of the aid allocated to related projects.

Mr Sanchez said the money would be invested so that it would accelerate the transformation of the Spanish economy with the intention to grow GDP by 2.5%.

The pandemic requires the acceleration of change that was already needed,” said the Prime Minister in an hour-long presentation of the government’s economic recovery plan.

The funding is expected to be spent between now and 2026. However, €27 billion of the first €72 billion which will be invested by 2022, will look to create around 800,000 new jobs.

Around 37% of the fund will be allocated to the country’s ecological transition with another 33% committed to Spain’s digital transformation, in line with the European Commission’s objectives.

Prime Minister Sanchez said, "It is not just a question of recovering the GDP that the pandemic has taken from us, it is a question of growing in a new more sustainable way”.

A drop in GDP and increase in unemployment is predicted

The news comes as Spain’s central bank downgraded the country’s economic outlook for 2020 predicting that GDP (Gross Domestic Product) could fall as much as 12.6%.

Despite Spain being Europe’s fourth-largest economy, unemployment has rocketed since the pandemic began in March. The Bank of Spain predicts that unemployment could potentially rise to 22.1% next year.

The recent health crisis and its imposed national and regional lockdowns have had a major impact on the Spanish economy. The country’s tourism industry which accounts for more than 12% of Spain’s GDP has also been decimated.

Spain opened its doors to European tourists again in June, however, any plans at stimulating the economy were short-lived after the UK announced that it would end their travel corridor arrangements due to a spike in Coronavirus cases.

Around 22 Schengen countries have also advised its citizens against travel to Spain placing further pressure on the country’s tourism sector.

Sources
https://www.euractiv.com/section/coronavirus/news/spain-hopes-to-create-800000-jobs-with-eu-recovery-funds/
https://www.euronews.com/2020/10/07/spain-pm-pedro-sanchez-plans-to-create-800-000-jobs-to-boost-recovery-from-covid-19

Image Credit: La Moncloa