The Spanish cabinet has given its approval to a new law which aims to change the economic setup of the country by the year 2020 through a series of profound reforms. The Minister of Tax and Economy appealed to all regional administrations for the support of these measures and asked them to come up with their own ideas for discussion.

The law primarily focuses of three areas which are, more transparency in the financial sector, providing encouragement to businesses, and promotion of all economic sectors which are concerned in the fight against global warming.

In addition to increasing swiftness in establishment of small businesses, with businesses involving capital up to 3000€ capital to be set in a period of 1 day, and a period of 5 days for capital up to 24,000€, the new law also proposes  amendments to the existing methods  of how contracts are put to tender procedure for increasing competitiveness. The proposal also includes the salary drawn by company directors to be regulated by the shareholders.  

Contrary to earlier statements, tax deduction for purchase of property would remain if the salary is less than 24,000€. Tax deduction for renovation would remain in place till 2012 with a deduction of 10% up to 3,000€.