However, and given the urgency that produces the current situation, the Spanish Government examine on Friday a package of 1.5 billion euros to promote the creation of jobs and improve the obtaining of subsidies. BBVA (IBEX:BBVA) has a financial proposal for the Government of Rodriguez Zapatero. The entity proposes to cut 3.5 percentage points the the value added tax (VAT) which help create 280,000 jobs and would have a neutral tax effect since it would be offset by greater a greater level of activity from fundraising. Perhaps this proposal should be considered by the Spanish Government. Returning to the question that we did at the beginning of the article: soon will recover the labour market in Spain? Everything would indicate that not. Stimulus plans appear to be insufficient given the very negative context, and the Government does not have resources to increase significantly the scale of the package of measures. It is thus that the economic prospects of Spain are not very encouraging. According to projections made by BBVA, the Spanish economy is contraeria 2.8 per cent this year and by 0.3% in 2010.

Both the external context as internal appear negative to think about an early recovery of the economy of Spain. External demand shows very weak and can not be counted with her to promote the recovery of the activity. Domestic demand is also weak. Companies limit their investment plans and families increase their saving face the possibility of falling into unemployment. To make matters worse, the banking system does not help to domestic demand. In the month of January, new loans to companies registered a decline of 7.4%, while loans to households fell by 38% (credit for housing fell by 49%). The Outlook for this year is to continue the contraction of bank financing, so it is difficult to even more the recovery of domestic demand.