Prime Minister Jose Luis Rodriguez Zapatero announced on Tuesday new economic stimulus measures. Car purchasers will receive up to 2,000 euros for cars costing up to 30,000 euros, with the government providing half of the money and the other half from car manufacturers. Out of the government subsidy, half will come from regional governments and the other from the national government.
As well as new measures to boost car purchases, Prime Minister Zapatero also announced a reduction in five percentage points of corporate tax rate over the next three years for small companies that create or maintain jobs this year.
In addition the prime minister laid out a series of measures to boost the renewable energy sector, including a subsidy for the renewal of non-contaminating and low consumption buses and a fund with 20 billion euros for projects of economic sustainability.
Spain saw itself fall into recession for the first time in over 15 years when the central bank announced two consecutive quarters of negative growth. Unemployment has practically doubled over the previous 12 months with the unemployment rate at 17.4%, the highest level out of the whole European Union.