Unemployment in Spain stands at 27.2 percent, with 6.2 million people out of a job and the economy at a virtual standstill. The number of young people without work in Spain stands at 57 percent. Economists and political leaders have long warned that austerity alone will not solve Europe’s woes and Rajoy and Rubalcaba’s preliminary accord is based on seeking initiatives to boost growth.
The Popular Party (PP) and Socialists (PSOE) have long been planning such a move to present a united front when continental leaders meet to discuss a package of recommendations on stability, growth and jobs designed for 23 countries.
While the Socialist has been a fierce critic of austerity measures imposed by the Rajoy government, Spain is intent on pushing the European Commission (EC) into a policy shift to create stimulus packages for countries suffering the brunt of the euro-zone recession rather than proceeding with its current diktat of massive spending cuts.
The other points in the document call for a credit line to opened by the European Central Bank to small and midsized companies and measures for European investment to be funded by the EC. The plan also calls for banking unity within the union and improvements to the European common market.
Source: El País