The Spanish Government has approved, in the cabinet meeting on Friday, 11 measures to stimulate the economy and make things easier for families facing financial difficulty in the current economic slowdown.

The measures include the ability for those in difficulty meeting mortgage payments to extend the loan at no cost.
A new plan to improve a return to the workplace for the unemployed.
New credit lines made available to those who want to purchase protected or subsidised housing.
It’s all part of the 10 billion € packaged announced earlier in the week designed to stimulate the stagnating economy.

The 11 measures are, in brief:
1: Help for families with mortgage payments by extending the loan at no extra cost.

2: Tax reductions, including the famous 400 € income tax rebate for all workers, pensioners and self-employed.

3: The cancellation of Patrimonio Tax, expected to cost the treasury 1.8 billion €. The measure back dated to Jan 1 this year.

4: Help in the re-location of the unemployed to find work. This plan has a budget of 21 million €.

5: Help for companies, with 2 billion in credit for Pyme small businesses.

6: VAT/IVA Payments – Companies can ask for VAT refunds monthly from 2009.

7: Assisted housing – new ICO credits of 5 billion, 2 more than previously planned.

8: Public works – new measures to speed up public works tenders and completion.

9: House construction – Plan to build 150,000 assisted or protected homes each year, and to promote energy efficiency in new buildings.

10: The renovation of old buildings – When the cost of renovation is more than 25% of the purchase price, tax breaks will be awarded including the return of VAT.

11: Foreign Investment – The Government will improve the investment conditions for non residents of Spain.