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Imagen Noticia The Spanish Council of Ministers allocates over 4,000 million euros to the automotive sector

NEWS from 2009/2/13:
The Spanish Council of Ministers allocates over 4,000 million euros to the automotive sector
The Programme (PIA, Integral Automotive Programme) is intended to help the sector recover and to safeguard its industrial infrastructure.
The aid packet includes a set of industrial measures with a view to boosting demand, preserving employment, improving logistics and promoting R&D and innovation, as well as a number of financial measures.

Five different central government Departments have been involved in designing the packet, together with regional governments, trade unions and the motor companies themselves.
The Programme is part of the so-called Plan E, the Spanish Economy and Employment Stimulation Plan, under the directives contained in the European Economic Recovery Plan.
Compared to similar programmes underway in other European countries, the PIA is second in the rank of total allocated funds, followed by Germany and the UK, who intend to invest 2,000 and 3,000 million euros respectively.
Upon request from the Minister for Industry, Tourism and Trade, Mr. Miguel Sebastián, the Council of Ministers approved the PIA during today’s plenary session. It is a set of measures involving various government Departments, whose main goal is to encourage the recovery of the automotive sector.
Owing to its considerable weight in both the industrial infrastructure and the labour force, together with its knock-on effect on other sectors and its high contribution to exports, the automotive sector plays a strategic role in the Spanish economy. In response to the current economic situation, the PIA channels a series of short, medium and long-term actions aimed not only at safeguarding the productive infrastructure but also at making it more competitive.
The Programme is made up of five large blocks: industrial and demand-boosting measures, employment measures, logistics-improving measures, measures to promote R&D and innovation and, lastly, financial measures. Due to this diversity, the following government Departments had to work hand-in-hand: Industry, Tourism and Trade; Labour and Immigration; Transport and Public Works; Science and Innovation; and Economic Affairs and Finance.

As well as that, input from regional governments, trade unions and private companies has been taken into account.
The approval of the PIA is the first ever joint action involving different Central Government Departments specifically conceived for the automotive industry, a sector which accounts for 6% of Spain’s GDP and directly or indirectly employs over 350,000 people.
The Programme is part of the so-called Plan E, the Spanish Economy and Employment Stimulation Plan, under the directives of the European Economic Recovery Plan, approved by the European Council on 11th December 2008.
Compared to similar programmes underway in other European countries, the PIA is second in the rank of total allocated funds, followed by Germany and the UK, who intend to invest 2,000 and 3,000 million euros respectively. France is first, with a total investment of 9,220 million euros.
As far as the demand-boosting measures are concerned, the initiatives underway in Spain amount to 2,000 euros per vehicle, less than in Germany (2,500 euros per vehicle) but considerably more than in France (1,000 euros) and the UK, who has not developed any demand-boosting plans.

The Spanish demand-boosting aid packet represents 0.013% of its GDP, whereas in Germany and France it represents 0.060% and 0.013% respectively.
Globally (demand-boosting measures and investment measures), the Spanish Government’s Programme accounts for 0.38% of its GDP, compared to 0.161% in the UK, 0.08% in Germany and 0.472% in France.

Regarding the total cost ratio per single employee, the Spanish PIA also ranks second in the European countries list with 26,062 euros, followed by the UK, which allocates 16,216 euros and Germany, with 2,307 euros. The cost per employee in France amounts to 33,406 euros.

Attached file 1: 2009_02_13_4000MillonesAyudas.pdf

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