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Spain to pass $10.8b plan to boost jobs, cut taxes in June: Prime minister

Published on May 31, 2014 11:15 PM
A woman looks at a board with job listings in an unemployment office in Gijon, northern Spain on April 30, 2014. -- PHOTO: REUTERS

MADRID (REUTERS) - Spain will approve a 6.3 billion euro (S$10.8 billion) plan next week to create badly needed jobs and will cut the main rate of corporate tax to 25 per cent from 30 per cent to make companies more competitive, Prime Minister Mariano Rajoy said on Saturday.

About one in four workers in Spain is unemployed, with the jobless rate climbing to over 50 per cent for people aged 25 or less. A tentative economic recovery has yet to feed into jobs and better living conditions for most Spaniards.

The tax announcement comes as the International Monetary Fund this week asked Spain to increase tax revenues to protect its public services and make further efforts to cut its budget deficit to ensure a lasting economic recovery.

The jobs package is due to be passed by the government next Friday and will include credit to small and medium-sized firms and an investments targeting research and development, energy-saving, transport and industrial production, Mr Rajoy said at an event in Sitges in northern Spain that was broadcast on Spanish television.

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