Spanish Prime Minister, Jose Luis Rodriguez Zapatero announced in Congress Wednesday morning an extensive program of measures in a bid to stop the market speculation over Spain’s solvency.

Amongst other smaller measures, the Spanish PM has announced the 49% privatisation of AENA as well as 30% of the State Lottery. Other measures include:

– The elimination of the 425 euros unemployment benefits program which expires in February 2011.

– A change in company taxes which would reduce taxes that small and medium sized business pay by increasing the tax band below which companies only pay reduced tax from the current 120,000 euros to 300,000 euros.

– The elimination of fees for membership of chambers of commerce.

– New rules on employment agencies designed to favour the creation of new jobs in the service sector.

The announced measures are expected to receive green light from the regular cabinet session this Friday.