Photo: Mariano Rajoy
Spanish Prime Minister Mariano Rajoy said Saturday his government will approve new job-creation measures before the summer, including modernizing the public employment service and lowering the corporate tax rate.
He made the announcement at a business forum in the northeastern town of Sitges, stressing the “vital” importance of reincorporating Spain’s large number of jobless into the workforce so they can participate in the economic recovery.
A total of 5.9 million Spaniards, or 25.9 percent of the workforce, are unemployed.
The Spanish government also plans to lower the corporate tax rate from 30 percent to 25 percent. The tax cut will be carried out in two stages starting next year.
The goal is to raise households’ disposable income, “boost consumption, improve the competitiveness of the entire economy, increase savings and, very especially, contribute to a rise in employment,” Rajoy said.
Spain’s Cabinet on Friday will approve a package of measures to spur growth, competitiveness and efficiency, thus fulfilling a portion of the 2014 National Reform Program submitted to the European Commission, the European Union’s executive arm.
The plan involves a total investment of 6.3 billion euros (some $8.6 billion), with 2.67 billion euros coming from the private sector and the rest from the public sector.
Among other measures, the prime minister said his government will extend an incentives program that encourages people to trade in old cars for more fuel-efficient models.