Spain looks to change its economy

20th September 2004, Comments 0 comments

20 September 2004, MADRID – The Spanish government announced Monday a huge increase in spending on research and development next year.

20 September 2004

MADRID – The Spanish government announced Monday a huge increase in spending on research and development next year.

The Socialists will raise spending by 25 percent next year, in line with a pre-election campaign pledge, sources said.
 
Spanish prime minister Jose Luis Rodriguez has said earlier this year that Spain must change its economy to concentrate on providing research and development, rather than service industries and cheaper labour.
 
With the exit of many multi-nationals to Eastern Europe or the Far East, where labour is cheap, Spain must look to offer more attractive research infrastructure for these companies, said the Spanish premier.

Economy minister Pedro Solbes said Monday most spending increases will be on social
policy and to stimulate productivity.

In the wake of the Madrid terrorist bombings, in which 191 people died, and a crackdown on domestic violence, there will be a 6.2 percent rise in spending on security.

This will pay for 7,700 new police officers, 150 new judges and 100 new prosecutors.

As part of the Socialist government's draft bill on domestic violence, there will be special judicial teams dedicated to dealing with these type of cases.

Health spending will rise by 6.9 percent to put more emphasis on preventative medicine.

Two million pensioners who do not have a  partner  will get a five percent rise in their pensions on top of the 2004 level of inflation.

Solbes said spending on education will rise 7.3 percent to pay for 380,000 scholarships - 9,000 more in secondary schools and 16,000 more for university places.

[Copyright EFE with Expatica]

Subject: Spanish news

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