The announcement was a rare glimmer of good news for Spain, which is deep in recession with more than one in four workers unemployed.

Renault has an industrial plan to develop its Spanish plants which will involve “the creation of 1,300 new jobs”, Rajoy said in a speech at a Renault plant in Palencia, near Vallodolid in northern Spain.

It will involve “the manufacture of four new car models in Palencia and an increase of 30 percent in the production of engines in Valladolid and gearboxes in Sevilla,” in the south, he added.

“At a time when Spain and the Spanish need good economic news, the allocation of the Renault group’s industrial plan to plants in our country is without doubt cause for us all to be glad,” Rajoy said.

The French giant, which employs 10,000 people at four sites in Spain, signed a deal on working conditions with Spanish labour unions last week but is still negotiating terms with workers in France as it seeks to be more competitive.