The government will allocate 2.5 billion euros to support tourism, extending its efforts to protect key parts of the economy

The government will allocate 2.5 billion euros to support tourism, extending its efforts to protect key parts of the economy.

The new credit line for tourism comes a day after Prime Minister Pedro Sanchez presented a 3.7 billion-euro stimulus package for the automotive industry. The two sectors account for about 22% of Spanish gross domestic product.

Spain’s government is pumping in aid amid forecasts from the central bank that the economy could shrink as much as 15% this year.

The latest measure is part of the fifth and final tranche of guaranteed credit lines the government approved yesterday.

They amount to 15.5 billion euros, with about half of the amount going to small and medium enterprises and self-employed workers.

The government has earmarked €150 billion for public investment in 2021 and 2022. 

According to estimates, this should encourage another €500 billion in private investment.

The government must send the European Commission the investment plans if it is to access the €750-billion coronavirus recovery fund that is currently being negotiated.

If all goes according to plan, Spain will receive €140 billion to help shore up its economy.

 

Written by BayRadio