LISBON, Portugal – The Spanish minister unveiled on Wednesday a primary plan to get his country out of recession by spending 140 billion euros ($162 billion) in european Union aid to reshape the economy, with the aim of creating 800,000 jobs over the next 3 years.
The program is a reaction to the severe recession caused by the coronavirus pandemic and its global disruption from economies. The main objective of the plan is to get Spain to move to green energy and a virtual economy, which will account for about 70% of the funding. .
“We want to turn this coup into an opportunity,” Prime Minister Pedro Sanchez said, referring to the abundant effects of the pandemic on society and the economy. “This is the challenge of our generation. “
Spain this week, the first EU country to exceed 825,000 coronavirus contagions, it is shown that more than 32480 more people in Spain have died as a result of COVID-19 and that its capital, Madrid, is experiencing the worst wave of contagion in Europe.
Spain is the most recent EU country to say how it intends to use the 750 billion euro coronavirus recovery fund, approved last July and designed to get the world’s largest trading bloc out of its innerst recession.
Last month, France unveiled a 10 billion euro ($116 billion) plan called “Restarting France,” which includes 40 billion euros ($46 billion) of the EU stimulus package.
Germany has a recovery plan of 130 billion euros by 2020 and 2021, which will go towards infrastructure, digitization and green energy projects such as electric vehicles, and Italy draws a roadmap to Spain, calling it #nextgenerationitalia.
Greece, after an expected economic contraction of 8. 2% this year, expects to recover with an expansion of 7. 5% next year. The Greek economy is expected to benefit from EUR 32 billion in the EU budget by 2026: 19. 3 billion in subsidies and 12. 7 billion in loans at interest rates and on favourable terms.
The Spanish government expects the country’s economy to contract by 11. 2% this year; in some sectors, such as tourism, the fall can be as high as 25%; officials expect an unemployment rate of about 17% this year and next.
The socialist government’s strategy points to an expansion of 7. 2% next year.
It is built on 10 main boards. They come with the strengthening of the public fitness service, public infrastructure, the transition to green energy and energy efficiency, the creation of vocational education programs and the acceleration of the virtual modernization of Spanish industry.
“The global has replaced and we will have to replace it also to maintain our future,” Sanchez said.
Another major spending plan, national tax revenues and government loans in foreign cash markets is expected to be announced next week when the 2021 state budget proposal is published.
The plan announced on Wednesday will be sent to Brussels for approval through the European Commission. The national budget must win that of the Spanish Parliament.
The economic damage will take time to resolve, especially in terms of public debt, as the Spanish government has spent billions on companies and jobs, and forecasts a budget deficit of 11. 3% of GDP this year and 7. 7 % in 2021.
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David McHugh in Frankfurt, Germany, and Derek Gatopoulos in Athens, Greece, contributed to the report.
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