Spain Budget News: Provincial Spending, Historical Memory, Hiring Aid

Provincial Budget Execution and Investments

Understand the mechanics of the current Provincial budgets and the nature of investments made from them. The execution of the budget spent to date has reached 67.12 percent, reflecting a strictly normal level, taking into account that many investments are spread across multiple items.

Regarding investments in 2009, budgeted roadworks currently underway are worth EUR 13 million. Nearly eight million has been contracted in the last quarter of this year, in addition to an 8.8 million contract awarded for conservation and maintenance. Given these figures, it is not understood where the information provided by Martin, stating that only two million had been invested, originated.

Historical Memory Grants Doubled

Rosalina Moreno reports that in response to the economic recession and crisis, the Zapatero government has already earmarked an initial budget of EUR 3,869,928 for activities related to victims of the Civil War and Franco in 2010. Grants for Historical Memory have doubled from two million to four million euros. Aid has been provided to 145 associations.

Labor Reform: Changes to Recruitment Aid

Labor will reduce the range of aid for recruitment.

• Incentives will primarily target young and long-term unemployed.
• Measures for accelerated approval in the labor reform are being devised.
• A group of a hundred economists is reordering the standard contract.

Government intervention involves a drastic reduction in the range of recruitment bonuses. Government sources indicate the proposal aims to eliminate all existing subsidies to concentrate on two: those involving the recruitment of young people and the long-term unemployed (unemployed for more than twelve months). These incentives are considered particularly useful for companies with fewer than 50 employees.

These two lines of incentives are planned for the years 2010 and 2011. The proposal includes diverting funding from existing training programs. This year's budget allocated more than 2,700 million euros to contract bonuses, including those for young people. From the labor perspective, only recruitment incentives for victims of gender violence and the disabled will remain.

The measure would not be retroactive. It is proposed that measures for accelerated approval in the labor reform, including those related to unemployment benefit, are among the first projects to see the light. CCOO recalls that for the measure to be successful, it needs to be based on a prior agreement between employers and unions.

PSOE vs PP on 2009 Budget Execution

The PSOE says it has executed 67.12% of the 2009 budget.

The socialist spokesman for the Provincial Government, Antonio Ruiz, accused the PP spokesman, Luis Martin, of manipulating data regarding the implementation of the 2009 budget, which, according to Martin, only reached 33 percent of planned investments. Ruiz said that Martin did not accurately represent the figures.