The Spanish government expects the national economy to contract 11.2% this year. In some sectors, such as tourism, the drop could be as much as 25%. Officials expect an unemployment rate of around 17% this year and next.
The Socialist-led government’s strategy aims to reverse the economic decline and achieve growth of 7.2% next year.
It is built on 10 main planks. They include strengthening the public health service, improving public infrastructure, transitioning to green energy and enhancing energy efficiency, developing professional training schemes and accelerating the digital modernization of Spanish industry.
“The world has changed and we need to change, too, to safeguard our future,” Sánchez said.
Another massive spending plan, using national tax revenue and loans taken by the government on international money markets, is expected to be announced next week when the 2021 state budget proposal is published. In preparation for that, the government earlier this week raised its limit on public spending by almost 54%.
The plan announced Wednesday will be sent to Brussels for approval by the European Commission. The national budget will need to get the Spanish parliament’s support.
Spain was allocated 140 billion euros ($162 billion) from the EU fund, roughly divided between grants and repayable loans.