Spain prepares for end of EU aid with special fund
23 November 2005, MADRID — Spain is preparing a financial plan to help it through lean times when European Union aid comes to an end.
23 November 2005
MADRID — Spain is preparing a financial plan to help it through lean times when European Union aid comes to an end.
Economy minister Pedro Solbes said the contingency fund would be a standby when the economy starts to decline.
Writing in The Economist magazine, he said: "This is something that has been put forward and we haven't totally ruled it out."
Spain has been the biggest recipient of EU aid in recent years.
But increased prosperity combined with the arrival in the EU bloc of poorer members from Eastern Europe mean it will lose out in the next few years.
Solbes said Spain is also considering reducing public debt now while the economy is on a healthy footing.
When there is a recession, it will allow Spain to keep spending programmes going, avoid tax rises and prevent public sector lay-offs.
The government debt, as a percentage of the GDP, could be lowered to 40 percent.
[Copyright EFE with Expatica]
Subject: Spanish news