MercoPress. South Atlantic News Agency

Spain launches stimulus plan to create 300.000 jobs

Spain has launched an 11 billion Euro plan aimed at boosting the economy and creating 300,000 jobs. The plan, which represents 1.1% of Spain's GDP is part of the European Union's 200 billion Euro stimulus announced on Wednesday.

The money will be mainly invested in infrastructure and public works, Spain's Prime Minister Jorge Luis Rodriguez Zapatero said. Spain's unemployment reached 11.3% in September - an EU record. The Spanish government said it would invest 0.8 billion Euro in the ailing car industry, which has been through a severe downturn and seen sales plummet 54.6% since the beginning of the year. The construction industry has also been severely hit by the financial crisis, with property prices falling and companies slashing thousands of jobs. The Spanish economy shrank by 0.2% in the third quarter, putting an end to 15 years of continuous growth. The European Commission has demanded that each EU member must spend about 1.2% of GDP to fight the economic slowdown. Germany launched a similar 50 billion Euro package, while next week France is expected to unveil economic measures worth 20 billion Euros.