SPAIN'S government will spend an extra 11 billion euros on public works and other stimulus measures to create 300'000 jobs next year and shelter the country from the global crisis.
The plan announced by Prime Minister Jose Luiz Rodriguez Zapatero, is equivalent to roughly one percent of Spanish gross domestic product. It includes 800 million euros in aid for the auto sector and is designed to safeguard jobs following the collapse of Spain's residential building boom, Zapatero told Spain's Congress.
The spending will form part of the European Union's proposed 200 billion euros stimulus package, and will help tip Spain's public sector deep into deficit from a two percent surplus of GDP last year.
The Spanish government has warned that it will temporarily exceed the EU's three percent of GDP deficit limit due to the world crisis but added that its relatively low levels of public debt give it margin to do so.
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