The Council of Ministers has approved a Royal Decree regarding a six-month extension to the temporary extraordinary unemployment benefit scheme, from 16 February to 15 August 2010, inclusive.

President Rodríguez Zapatero, announced this measure last Wednesday in the Senado [Upper House of Parliament], first to the Socialist Parliamentary Group and subsequently to the Government control session.

The First Vice-President of the Government, María Teresa Fernández de la Vega, reiterated to the press that the large number of unemployed people in Spain continue to be the main concern of the Government.

She said that the roadmap to recovering growth is based on three very clear pillars: measures for combating the effects of the crisis, change towards a sustainable economic model and the maintenance of social policies.

The temporary extraordinary unemployment benefit scheme, governed by Law 14/2009 of 11 November, has enabled unemployment benefit coverage to be increased by over five percentage points and now stands at 80% of all unemployed people, according to a report presented today by the Minister for Work, Celestino Corbacho.

The Vice-President explained that more than 333,000 unemployed Spaniards have benefited under the scheme. Of these people, 72% are already involved in job market reinsertion programs and almost 18% (over 52,000 people) have found work. Up to February 2010, the economic cost of this scheme has amounted to 295.3 million euros.

María Teresa Fernández de la Vega explained that the extension “will only affect unemployed people under the age of 65 who are no longer eligible to receive their contribution-based benefits or other financial support due to unemployment from 16 February to 15 August, inclusive”.

The Vice-President stated that the maximum period during which it will be possible to receive this financial support, which in 2010 amounts to 426 euros, will continue to be six months.

The Government calculates that a further 243,100 unemployed people will be able to benefit under the scheme and the estimated cost of this extension will amount to 517.8 million euros.

Budget austerity

The Second Vice-President of the Government and Minister for Economy and the Treasury, Elena Salgado, presented a report to the Council of Ministers containing a series of proposals aimed at accelerating the implementation of the measures adopted by the Council of Ministers on 29 January last to reduce the public deficit.

Ms Fernández de la Vega stated that the Ministry of Economy and the Treasury has already issued a notification to all ministries detailing the adjustments to be made by each of them under each expense item in the budget in order to cut costs.

On the same subject, she said that “the Ministry of Public Works will be the ministry to experience the largest adjustment, followed by the Ministry of the Environment, Rural and Marine Affairs and the Ministry of Industry, Tourism and Trade”.

Furthermore, the Ministry of Economy and the Treasury has notified the corresponding councillors for all the Autonomous Regions, the Spanish Federation of Municipalities and Provinces and the National Commission for Local Administration of the government proposal regarding a framework agreement for public finance sustainability.

The Vice-President announced that the Government will call a meeting of the Fiscal and Financial Policy Council and the National Commission for Local Administration to submit both proposals for approval, those that affect the Autonomous Regions and the Local Authorities.

International cooperation

The Government also approved the 2010 Annual International Cooperation Plan, the priority of which centres on issues for tackling the economic crisis and the impact study regarding the crisis on developing countries, as well as contributing to rural development, food security and to the fight against climate change.

The plan includes voluntary contributions, among others, to the World Food Programme and UNICEF of more than 22 million euros to be used in Haiti.

On the issue of Haiti, the Minister for Foreign Affairs and Cooperation, Miguel Ángel Moratinos, presented a report on the response from Spain following the earthquake, which also includes action taken within the framework of the European Union.

The Vice-President underlined that Spain has been fully committed to Haiti from day one. The response was immediate, with the deployment of more than 160 tons of equipment and specialised personnel, as well as generous, given that Spain has contributed more than 120 million euros in aid.

He added that this response will continue to be active and committed to boosting the reconstruction of infrastructures and services in the country, as well as the state of Haiti itself.

Renewal Scheme (Plan VIVE) for Buses

The Council of Ministers agreed to authorise the Ministry of Public Works to sign the agreement with the Official Credit Institution (ICO) for implementation of the credit line for the 2010 Renewal Scheme (Plan VIVE) for Buses, which will be given 166 million euros.
María Teresa Fernández de la Vega emphasised that this plan, approved last year and in which over 48 million euros have been invested, “will encourage the bus and coach market to purchase new vehicles that are more efficient, more accessible, safer and less polluting”.

Other agreements

• Approval of the minimum requirements for centres providing education services during the second period of pre-school education, primary education and compulsory secondary education.
• Agreement regarding the request for authorisation from the Congreso de los Diputados [Lower House of Parliament] for the deployment of additional troops in Afghanistan.
• Approval of a Royal Decree establishing the procedure for terminating restrictions due to guarantee of supply in the generation of electricity.
• Regulation of new rules regarding communication between the Public Authorities and the public and companies.
• Approval of aid due to flooding in the Canary Islands.