(MADRID) – On Saturday, Mariano Rajoy, the Prime Minister of Spain, said that the country will endorse a 6.3 billion Euro (USD 8.6 billion) plan in the coming week to create desperately needed jobs, and also plans to reduce the main corporate tax rate from 30% to 25%, so as to make the companies a bit more competitive.
According to an estimate, one out of every four workers is unemployed in Spain. Also, the rate of joblessness has climbed to over 50% for people with ages 25 or less. Moreover, a provisional economic recovery is yet to contribute to jobs and improved living standards for most of the Spaniards. The announcement regarding the tax was made after the International Monetary Fund (IMF) asked Spain this week to increase their tax revenues in order to safeguard its public services, and make some more efforts to lower its deficit, so that a sustaining economic recovery can be ensured.
Furthermore, Rajoy said that the government will approve the jobs package next Friday, which will include crediting small and medium sized companies, and an investments targeting research and development, transport, energy saving and industrial production. He said this at an event held in Sitges, in northern Spain, and was broadcasted on Spanish television. He said that steps aiming at fixing the public employment service would also be invoked. Moreover, he said that the government will also pass a wide ranging tax reform some time later in June, that will include a reduction in the rate of corporate tax, though the companies would appreciate lesser tax breaks.