Madrid - Spain's Socialist government on Friday presented draft legislation aimed at "changing the economic model" in the country by 2020. Spain's deep economic crisis has revealed weaknesses in the economy, such as an excessive dependence on the construction sector, the collapse of which contributed heavily to the recession sparked by the global crisis.
Prime Minister Jose Luis Rodriguez Zapatero's government now wants to modernize the economy with measures favouring technological know- how, a more international orientation and renewable energies.
The so-called Law of Sustainable Economy contains measures to increase financial transparency, cut red tape, facilitate the purchase and renting of housing, as well as tax incentives to research and development.
Deputy Prime Minister Maria Teresa Fernandez de la Vega described the package as "very ambitious," while conservative opposition leader Mariano Rajoy accused the government of making endless "announcements" which "only make things worse."
The law was to be discussed by political parties and social and economic partners before being submitted to parliament.
The government also wants to make the labour market more flexible, with Economy Minister Elena Salgado meeting with trade unions earlier this week to discuss plans to allow companies to cut employees' working hours and pay.
The government expects the economy to shrink by about 3.5 per cent in 2009.
