Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your experience. Save up to 40% More details

Spain to approve 50 billion aid package for companies, PM says

EconomyJul 02, 2020 09:30AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
© Reuters. The G5 Sahel summit in Nouakchott

By Jesús Aguado and Nathan Allen

MADRID (Reuters) - Spain will approve 50 billion euros ($56.4 billion) as part of a new set of measures aimed at boosting companies' investment capacity and solvency in an attempt to revive the coronavirus-hit economy, Prime Minister Pedro Sanchez said on Thursday.

The announcement was part of other proposals such as tax reform partly focused on raising taxes on larger companies rather than smaller ones.

Sanchez said in an interview with La Sexta on Thursday that the new measures were "linked to (boosting) solvency and investment."

A government source told Reuters earlier that Spain would approve this package at an extraordinary cabinet meeting on Friday.

"Measures are aimed at improving the financial structure of companies to also lower their risk of defaulting on their payments with lenders," the source said, adding that financial instruments were still being discussed.

In March, the government approved state-backed credit lines of up to 100 billion euros to help support mainly small and mid-sized companies and self-employed against the fallout from the pandemic.

Last month, Bank of Spain Governor Pablo Hernandez de Cos said mechanisms were needed to encourage the growth of small and mid-sized companies to reduce their higher borrowing costs compared to European peers.


Policymakers in Europe have been discussing options for getting more equity, rather than debt, into businesses but few countries have ready-made vehicles for funnelling mass investment into SMEs.

While several governments have set aside funds for capital injections into large companies, they are having to think up innovative options for smaller firms.

On Thursday, Sanchez said it was "imperative and necessary" for the European Union to reach an agreement on a commmon recovery fund by July, but warned that negotiations were set to be a "big battle."

EU members agreed in June that economic action was urgently needed but remain divided over the value of loans or grants to be provided and if the program should last two or three years.

"We believe it should be four years," Sanchez said, adding that passing a 2021 budget would depend heavily on the outcome of the talks.

After years of political instability, Sanchez's government has failed to pass its own budget, instead rolling over one from 2018 drafted by his conservative predecessor Mariano Rajoy.

Sanchez said he would meet with his Dutch counterpart Mark Rutte, an advocate for a smaller, loans-based program, on July 16 to discuss the fund.


Spain to approve 50 billion aid package for companies, PM says

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email