04/18/2008
Spain's government has approved a euro10 (US$16) billion stimulus package for the country's slumping economy.
The government says the plan includes a euro400 (US$635) income tax rebate for anyone who files a return.
It also aims to help the construction industry and construction workers laid off because of a dramatic slowdown.
The real estate sector has been the main engine behind more than a decade of strong economic growth in Spain.
Deputy Prime Minister Maria Teresa Fernandez de la Vega has said Thursday that the government can afford to spend money on this package because of accumulated budget surpluses in times of stronger growth.
Barcelona drought
On the other hand, the government has also approved an emergency plan to divert vast amounts of river water to drought-stricken Barcelona.
Spain has been enduring drought for years. But this time Barcelona is the worst off. Its reservoirs are at a fifth of their capacity. Officials say water restrictions will be needed in the autumn unless it rains by then.
The plan approved Friday by the Cabinet calls for diverting up to 13 billion gallons of water from the Ebro River through an existing series of pipeline and a planned extension to quench the parched city of 5 million people northeast Spain.
The plan will cost euro180 million (US$286 million) and the new conduit will take six months to build.
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