SWOT Analysys & Strategy Plan:Facing the global crisis

Oscar ÁlvarezEconomic Intelligence DirectorEconomic Intelligence Director

Amman, 14 January 2010

C t tContents

1.- Spain SWOT analysis and development strategy

2.- FDI SWOT analysis & Invest in Spain Strategy Plan

3.- Looking ahead3. Looking ahead

2

1. Spain SWOT analysis and d ldevelopment strategy

3

The importance of Spain in the world’s economy

• Spain has experienced sustainedRank Country

GDP, current prices. U.S. dollars (Billions) 2007

1 United States 13.808 2 J 4 382 positive growth over the last 15

years.

2 Japan 4.382 3 Germany 3.321 4 China 3.280 5 United Kingdom 2.804 6 France 2.594 7 Italy 2.105

• Spanish is the world’s eight-largesteconomy.

7 Italy 2.105 8 Spain 1.440 9 Canada 1.436

10 Brazil 1.314 11 Russia 1.290 12 India 1.101 13 1 023

Source: IMF

13 Mexico 1.023 14 Australia 909

GDP per capita in PPP terms (EU-25 index = 100)

103105

GDP per capita in PPP terms (EU-25 index = 100)

103105

• Over the last decade, the Spanisheconomy has systematically grownabove the Euro Area average, withnoticeable effects in terms of per93,9

98,8100,9

103

97,196,996,395

100

EU-25

93,9

98,8100,9

103

97,196,996,395

100

EU-25

noticeable effects in terms of percapita GDP convergence.89,1

93,091,991,0

85

90SPAIN

So rce E rostat

89,1

93,091,991,0

85

90SPAIN

So rce E rostat

4

801997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Source: Eurostat

801997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Source: Eurostat

The macroeconomic scenario: Crisis and recovery

Table 3MACROECONOMIC PROSPECTS

Chained volume indices: 2000= 100, unless otherwise indicated

1 Real GDP 3 7 1 2 -1 6 1 2 2 6

2007 (A)

2008 (F)

2009 (F)

2010 (F)

2011 (F)

Rate of change (%)

1. Real GDP 3,7 1,2 -1,6 1,2 2,6

2. Nominal GDP. Billion euro 7,0 4,7 0,0 3,3 5,0

3. Domestic private final consumptionexpenditure (*) 3,5 0,5 -1,5 0,7 1,3

4. Public administrations final consumption expenditure

4,9 5,1 2,1 1,5 1,7

expenditure

5. Gross fixed capital formation 5,3 -1,8 -9,3 -1,2 4,4

6. Changes in inventories (% of GDP) 0,2 0,2 0,2 0,2 0,2

7. Exports of goods and services 4,9 2,9 0,3 3,6 4,6

8. Imports of goods and services 6,2 0,6 -4,6 0,4 3,0

9. Final domestic demand 4,5 0,7 -3,2 0,4 2,2

10. Changes in inventories -0,1 0,0 0,0 0,0 0,0

11. External balance -0,8 0,6 1,6 0,9 0,4

(*) Includes households and NPISH (non-profit institutions serving households)

(A) Advance. (F) Forecast( ) ( )

Source: INE and Ministry of Economy and Finance.

• The main inputs for recovery in 2010: Return to normalcy in international financial markets

5

The main inputs for recovery in 2010: Return to normalcy in international financial marketsand ensuing improvement in general confidence and international trade push upconsumption, investment and net exports.

Vulnerabilities (1): An Over-sized residential construction sector

Housing investment in Spain as %GDP (1996-2008)

8,0

Housing investment and employment(annual growth rate)

20,0

4 5

5,0

5,5

6,0

6,5

7,0

7,5Spain

Euro zone (2008)

5 0

0,0

5,0

10,0

15,0

20,0

I II III IV I II III IV I II III IV I II III IV I II III IV I II III IV I II III IV I II III IV I II III IV I II III IV I II III IV I II III IV

3,0

3,5

4,0

4,5

I II IIIIV I II IIIIV I II IIIIV I II IIIIV I II IIIIV I II IIIIV I II IIIIV I II IIIIV I II IIIIV I II IIIIV I II IIIIV I II IIIIV I II IIIIV

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008‐25,0

‐20,0

‐15,0

‐10,0

‐5,01997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Inv. Vivienda Ocupados

Housing sector as %GDP by country

2007 2008 IV q 2008Variation pp.             

(IVq 2008 ‐IVq 2007)

Spain* 7,5 6,6 6,0 ‐1,75Euro area 5,7 5,5 5,3 ‐0,36France 5,6 5,6 5,5 ‐0,18Germany 5,5 5,4 5,4 0,03Italy 4,8 4,8 4,8 ‐0,09y , , , ,United Kingdom 3,3 3,0 2,9 ‐0,35* Spain variation: Iq 2009‐IV q2007

6

The decline in the housing sector started in 2006. The international financial crisis turned into a moresevere process what could have been a smooth adjustment.

Vulnerabilities (2): A highly indebted economy…

Investment composition

30 0

Other products Housing Other construction Equipment goods

32National  investment (m.a.4, %PIB) National savings (m.a.4 %PIB)

20,0

25,0

30,0

24

26

28

30

current account balance

5,0

10,0

15,0

18

20

22

24

Spain has had high investment rates for the last 10 Capital-per-worker ratio

0,0

2000 2001 2002 2003 2004 2005 2006 2007 2008

I II III IV I II III IV I II III IV I

2006 2007 2008 2009

Spain has had high investment rates for the last 10years. This was not focused exclusively on thehousing sector (e.g. investment in equipmentgoods was greater)

Capital-per-worker ratio

The large immigrant inflows spurred a rise in thecapital endowment (4 millions between 2000 and2007), so as to maintain the capital-per-worker

7

ratio.

Vulnerabilities (3): One of Europe's most opened economies

Openness index

economies …

I t (% GDP)

World exports

40,00

50,00

Importaciones (%PIB)

Exportaciones (%PIB)

Imports (% GDP)Exports (% GDP)

10,0

20,0

30,0

40,0

20,00

30,00

‐30,0

‐20,0

‐10,0

0,0

World exportsIndustrial countries

0,00

10,00

España Alemania Francia Italia Reino Unido  EEUU JaponSpain Germany France Italy UK US Japan‐60,0

‐50,0

‐40,0

e f m a mjn jl a s o n d e f m a mjn jl a s o n d e f m a mjn jl a s o n d e f m

Industrial countriesOther countries

E t till ff i f th l b l i d h d li d 19% hi h h ff t d

2006 2007 2008 2009

Exports are still suffering from the global recession and have declined 19%, which has affectedgoods (-20.5%) and services (-15.9). On the other hand, imports of goods and services decrease22.3%

8

Some bold steps to fight the current crisis: The Plan-E

• Orientation #1. Supporting households:• A €14,000M fiscal stimulus package over in 2008-2009.

A t l f t t ti l d f l f l d• A two-year plan of mortgage payment partial deferrals for unemployed.

• Orientation #2. Supporting firms:• Tax reductions bonuses and deferrals expected to increase firms’ liquidity by €17 000M• Tax reductions, bonuses and deferrals expected to increase firms liquidity by €17,000M.• A special plan of government-sponsored credit facilities for SMEs endowed with

€29,000M.

• Orientation #3. Supporting employment:• Special investment fund for local entities and special fund for employment and economic

ti ti b d t d t €11 000M ill t 300 000 j breactivation, budgeted at €11,000M, will create some 300,000 new jobs.• Special additional allocation in the Central Government Budget, (€33,000M in 2009) to

boost public investment.

• Orientation #4. Supporting the financial sector:• Public-guarantees scheme for new bank-debt issues (up to €200,000M ), special fund for

9

high-quality bank-assets purchases (up to €50,000M), deposit guarantee fund has beenraised to €100,000.

Spanish financial sector is facing the crisis from a sound starting positiong p

• Spanish bank’s capital ratios remain strong.9%

10%

Bank capital (% of total assets, 2007)

3%

4%

5%

6%

7%

8%

• A retail-banking model together with a

0%

1%

2%

Italy

Spa

in

Irela

nd

U.K

.

Fran

ce

Sw

itzer

land

Ben

elux

Ger

man

y

Ssound regulatory and supervisoryframework play in favour of high solvencyratios.

S

Accumulated market-value loss (from 1/1/2008 to 27/1/2009)

Source: Bloomberg

-10%0%

Spa

in

Italy

Sw

itzer

land

U.K

.

Por

tuga

l

Nor

dics

Fran

ce

Gre

ece

Ger

man

y

Ben

elux

Irela

nd

• Market-value losses suffered by Spanishbanks remain the lowest in Europe.

-70%-60%-50%-40%-30%-20%

10

-100%-90%-80%

Source: Bloomberg

Rigorous fiscal policy over the booming years pays now:A comfortable margin for countercyclical fiscal policies

Public Debt (% GDP)Public Debt (% GDP)

802008

50

60

70%

GDP

2009

2010

20

30

40

y

%

Source: European Commission, Jan. 2009Source: European Commission, Jan. 2009

Finl

and

Spa

in

Irela

nd

U.K

.

Net

herla

nds

Aus

tria

U.S

.

Ger

man

y

Fran

ce

• Debt/GDP ratio among the lowest in advanced economies.

• Countercyclical policies over the recession will only have a limited impact on such ratio. As aresult, expected debt/GDP ratio in 2010 remains well below EU average.

11

Spain is a large player in international capital and trade markets

• In spite of the increasing degree ofinternational competition and the

Share of exports of goods and services in world trade (2001-2007, % increase)

Main goods exporters (market share 2007)

120.0

Main services exporters (market share 2007)

120.0

very high pressure from domesticdemand over the last years,Spanish services exporters havei d th i ld h i th

60.0

80.0

100.0

(200

1 =

100)

60.0

80.0

100.0

(200

1 =

100)

increased their world share in theinternational markets.

• The loss in goods markets share0.0

20.0

40.0

NL

rmany

elgium

Spain Italy

Japan

FranceCan

ada US UK

Inde

x

0.0

20.0

40.0

rmany

Spain UKBelgiu

n

Japan Italy NL US

Canada

France

Inde

x

The loss in goods markets shareis smaller than in most advancedeconomies .Source: WTO

Germ Belg S J Fr Ca

Germ S Be J Ca FrForeign Direct Investment Inflows

• The Spanish economy is an

Rank 2008

Country2007

(MM euro)2008e

(MM euros)growth %

1 U.S. 232,8 220 -5,5

2 China (China+HK) 143,4 153,1 6,8

3 France 158 114,3 -27,6

4 U K 224 109 4 51 1 • The Spanish economy is anattractive destination for foreigndirect investment.

4 U.K. 224 109,4 -51,1

5 Russia 52,5 61,7 17,6

6 Spain 53,4 57,3 7,3

7 Brazil 34,6 41,7 20,6

8 India 23 36,7 59,9

9 Sweden 21 36,5 74,3

12

Source. UNCTAD. 2008 estimated

, ,

10 Holland 99,4 29,5 -70,4

Spanish firms are in leading positions in the world markets with highest potential for growth

• Infrastructures provision and management: There are six Spanish firms in the world’s top-ten, with a 40% world market share in the transportation subsector.

• Sustainable development and renewables: Both the world’s number one wind farm operatorand the second largest wind turbine producers are Spanish. One of the top five European solarcell producers is Spanish Also Spanish firms are world leaders in desalinization technologycell producers is Spanish. Also, Spanish firms are world leaders in desalinization technology.

• Information and communication: The third-largest provider of telephone services by customerInformation and communication: The third largest provider of telephone services, by customerbase, is Spanish. Also, the second-largest European IT corporation, by market value, isSpanish.

• Banking sector: The first and third largest banks, by market capitalization, in the euro area areSpanish.

• Other sectors: Several Spanish firms rank in top positions in some traditional sectors includingOther sectors: Several Spanish firms rank in top positions in some traditional sectors, includingtourism services in which Spain is the second most visited destination in the world, componentsfor vehicles, textile industry, ceramic tiles and agricultural-food industries.

13

• Latin-America: Spanish firms are the second-largest investors and the largest investors in thisregion’s financial sector.

Looking into the future (I):It is not all about construction

Sectoral contribution to GDP growth (2003-2008, accumulated)

• Growth over the last business cyclehas been largely driven by the

14%

18%

14%

18%Industry

Construction

has been largely driven by theservices sector.

6%

10%

6%

10%Services

Agriculture

GDP

-2%

2%

03 04 05 06 07 08-2%

2%

• How will the Spanish economy will look like after this crisis? Some interesting clues: T t l l t f ll b 3 6% i D b 2008 t it b 11 7% i th R&D t 9 4% i- Total employment fell by 3.6% in December 2008, yet it rose by 11.7% in the R&D sector, 9.4% in environment-protection activities, 7.4% in health services, 5.1% in ITs, 3.7% in education and 2.5% in communication technologies.

- Total manufacturing production fell by 4.8% over the period Jan-Oct 2008. But, some sub-sectors ith hi h t h l i l t t h d iti f ith 4 5% i f th i

14

with a high technological content showed a positive performance with a 4.5% increase of their production.

Looking into the future (II):An ambitious economic-reforms program is underway

• The Spanish government is fully determined to implement a number of structural reforms aimed at furtherpromoting the efficiency and competitiveness of the Spanish economy:

Transpose of the EU Services Directive to enhance competition and reduce inflation: more than7,000 regulations will be affected with direct impact on potential GDP (+1,2%) and inflationdifferential with EMU (-0,5 pp).

New legislation on energy efficiency and renewable energy complemented with an exhaustiveplan to reduce energy consumption and to increase the weight of renewable energy up to 40% oft t l l t i it d ti i 2020total electricity production in 2020.

A plan of action to reduce administrative burdens on business with a goal of a 30% red tapereduction by 2012.

• Banking sector: The first and third largest banks, by market capitalization, in the euro area areSpanish.

reduction by 2012.

A plan to promote the residential rental market through reforms of the Civil Justice Law, UrbanRental Law and authorization for REITS. Also, special effort is being devoted to refurbishment-related activities, including tax improvements and a RENOVE plan for buildings and touristfacilities.

An integral program to increase competitiveness and efficiency in transport networks: New

15

An integral program to increase competitiveness and efficiency in transport networks: NewPorts Act, partial privatization of airports management, intensification in the use of rail freight.

Looking into the future (III):Long-run growth fundamentals remain solid

• Spain’s funding needs over the lastyears have been devoted to sustainhistorical high rates of investment

Investment in equipment (average growth, 1995-2008, %)

810

Investment in equipment (average growth, 1995-2008, %)

8108

10

historical high rates of investmentin equipment.

• The country’s degree of0246

0246

0246

capitalisation is now deeper thanever.

• Working age population in Spain is

0 Germ

any

Netherland

Finland

Austria

EU

-15

Denm

ark

UK

Italy

France

Spain

0 Germ

any

Netherland

Finland

Austria

EU

-15

Denm

ark

UK

Italy

France

Spain

0 Germ

any

Netherland

Finland

Austria

EU

-15

Denm

ark

UK

Italy

France

Spain

• Working-age population in Spain iswell above other European countries.

• High potential for further increases in

s

Source: Eurostat

ss

Source: Eurostat

Working-age population (15-64 y-o; % total po.)

Female participation in labor force (% of total female po.)

• High potential for further increases inworking population since femaleparticipation is still relatively low.

67

68

69

70

50

55

60

65

63

64

65

66

30

35

40

45

Spain EU-15 • Consistently, potential GDP growthis estimated in the range 2 5 – 3%

16

63

SpainIre

land NLEU27 Greece

Germany UK

ItalyBelg

iumFrance

301997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Source: European Commission

is estimated in the range 2,5 – 3%.

2. FDI SWOT Analysis & Invest in Spain Strategy Plan

17

SWOT ANALYSISWEAKNESSES THREATSWEAKNESSES THREATS

■ Low productivity of the work factor, which affects unitary labourcosts.

■ Insufficient Total Productivity of the Factors■ Low competitiveness-price of Spanish companies because of the

inflation differential

■ Relocation of manufacturing sectors■ Intense international competition in capturing investments.■ Evermore competitive developing countries in the provision of value-

added services.■ Poor definition and confusion regarding the Administration’s policies

■ Impositions on companies that exceeds the EU-15 Average in med-term.

■ Weakness of the Spain-Brand■ R&D spend per GDP below EU-15 average and loss of innovations

indicator positions.■ Rigidity of the labour market

■ Poor definition and confusion regarding the Administration s policies that affect the investor

■ Slowness in adapting to changes in trends that influence foreign investment (costs, relocation, outsourcing)

■ Insufficient collaboration Universities-companies■ Fragmented image overseas across 17 regions■ Excessive bureaucracy in all of the establishment process due to the

diversification of intermediaries (State, regions, local)■ Long bureaucratic dealings to obtain visas for non-EU citizens

STRENGTHS OPPORTUNITIESSTRENGTHS OPPORTUNITIES

■ Growth of GDP and GDP percentage above European average■ Growth of population and employment rate above European

average.■ Political and economic stability. Minimum risk-country■ Natural Resources: sea coasts sun wind

■ Existence of international flows of investment in functions andsectors in which Spain is competitive

■ Platform for accessing the Latin American and North African markets■ Cultural proximity to Arab countries■ Public support for R&D above the EU-15 average■ Natural Resources: sea, coasts, sun, wind

■ Geo-strategic position with Latin America and Northern Africa■ Spanish language■ Qualified labour at a competitive price■ Fiscal pressure below the EU 15 average■ Attractive fiscal regime for FSHCs.

Positive image: people climate quality of life

■ Public support for R&D above the EU-15 average■ Creativity and dynamism of companies■ Collective of foreign retirees with a high purchasing power■ Size and growth of the purchasing power of the collective of

immigrants■ Deregulation of markets (transport and TDT)■ Existence of a network of SMEs with technological capabilities

18

■ Positive image: people, climate, quality of life■ Quality of life

■ Existence of a network of SMEs with technological capabilities.■ Capturing of risk capital funds■ Judicial security in the matter of intellectual copyright■ Excellent research centres

STRATEGY PLAN

Scope & Objectives

To analyze the competitive position of Spain as an FDI recipient (SWOTAnalysis)Analysis).

To define a strategy that develops a proactive policy to attract and promote To define a strategy that develops a proactive policy to attract and promoteinvestment (prioritizing sectors, markets, target groups, and so forth).

To define the Invest in Spain model and its positioning.

Determine Invest in Spain’ Plans for the period 2008 – 2010.

STRATEGY PLAN 2008-2010

Attracting FDI

Identify & attract foreign investment that creates

Provide high added value services to foreign investors already established in Spain

Maintenance & Reinvestment

investment that creates employment and wealth

y p(maintaining and fostering their activities).

Promote the image of Spain as

Image of Spain

Establishing a friendly business environment in

Business Environment

Promote the image of Spain as an attractive FDI destination

Spain by addressing all the factors that positively influence FDI inflows into Spain

Plan stratégique2006-2009

COOPERATION WITH REGIONAL IPAs

… other public or private institutions that could be Spanish or from somewhere else.

STRATEGY PLAN

Attracting FDI Imagen de EspañaMaintenance & Reinvestment

Image of Spain Business Environment

STRATEGY PLAN

Regions Regions RegionsRegions

The regions are invited to participate in all our activities and Plans.

Invest in Spain works under the principles of NEUTRALITY and TRANSPARENCY with the regions and p p p gfor that reason we have developed an internal online tool (INTERACTU@) which allows us to manage all the relations with the regions:

• All the projects that Invest in Spain receives are published through INTERACTU@ in order to make it possible for the Regions to present their offers.

• We can track the projects during all their phases (from the consultation itself to the investment, reinvestment or even disinvestment) and also have knowledge of all the operational costsrelated to them.

• This enables us to manage all our events and the participation of the interested regions.

• All our data bases and relevant reports are distributed through this tool and hence are at the disposal of all the regions.

FILTERS USED TO IDENTIFY STRATEGIC SECTORS/ACTIVITIES (I)

Filter 2 Filter 3Filter 1

/ ( )

Relevance of the sector to international FDI

* Current

Quality of the investment

* Technology

Importance to Spain

* GDP Current Worldwide FDI flows relating to each sector* Future forecasts for worldwide FDI

Technology transfer and know-how* Quality of employment* V l tilit f

GDP* Current FDI in Spain* Perspectives for growth

for worldwide FDI flows

* Volatility of investments* Business for local companies* Increase in exports

25

FILTERS USED TO IDENTIFY STRATEGIC SECTORS/ACTIVITIES (II)

Filter 5 Filter 6Filter 4

/ ( )

Filter 5Opportunities per sub-sector within pre-selected sectors

Filter 6Invest in Spain’s power to act

Filter 4Attractiveness of Spain for different types of investment

* Structuring by sub-sectors and identification of specific

* Prioritisation* Infrastructure* Workforce* Market* Economy specific

opportunities on the basis of interviews with sectorial experts

Economy* Labour related* Fiscal* Subsidies* Land* C lt* Culture* R&D* Regulation* Stability

26

STRATEGIC SECTORS/ACTIVITIES

FunctionsSectors

Group 1

ICT Energy (renewable a priority) Healthcare and pharmaceuticals,

biotechnology

Headquarters R&D

Environment

Aeronautical Automotive Logistics Agro-alimentary Industry Tourism (maintenance) Real estate (economic activities)

Group 2 Shared service centres (Contact Centres,

others)

( )

Top 100 investment companies abroadRest Top 100 investment companies abroad

On the basis of these sectors Invest in Spain analyses the specific business opportunities in accordance with the following example

RENEWABLE ENERGIES (Example)

On the basis of these sectors,, Invest in Spain analyses the specific business opportunities in accordance with the following example

Components (multiplier boxes, bearings)

Wind Energy

Used to generate energy Energetic cultivation

Manufacturing and operation of equipment (new building codes)

Solar thermal

Wave / tidal and currentsMarine energiesg

Bio-fuels (Biodiesel technology) Methods of Biomass combustion

Biomassenergies

Biogas (operation) Masking use of hydro-electrics

(operation)Others

Manufacturing of silicon waffles Development of silicon substitutes

Solar/photo-voltaic

Technologies for the production, storage, distribution and usage of hydrogen (Fuel batteries and combustion engines

Hydrogen

DEFINITION & PRIORITISATION OF MARKETS

Invest in Spain has a specific commercial network that specialises in seeking investment projects that support the SpanishTrade Offices network abroad. Different factors have been taken into account for the selection of priority markets:

1 Th t f FDI1. The recent cross of FDIstock/flow in Spain (countrieswith the greatest presence instocks and which are relevant torecent flows in investmentsectors)sectors).

2. The greater role being taken bysome emerging countries inissuing FDI.

3 The relative presence of3. The relative presence ofinternational agencies identifiedwith improved practices.

It is aimed to have 20 branches in17 countries, prioritised into fourgroups.

More than one branch in U.S.A. and China, due to their size.

The list of priority markets is reviewed on an annual basis, bearing in mind our target sectors.

3. Looking ahead

Looking Ahead(1): The challenge of changing the productive structure

In this new period special emphasis should be placed on the idea that growth

productive structure

In this new period, special emphasis should be placed on the idea that growthmust be sustainable over the long term in at least three dimensions:

• A model based on innovation in the broad sense so as to successfully• A model based on innovation in the broad sense so as to successfullyaddress the phenomenon of globalisation.

• An environmentally-sustainable low-carbon model so as to successfullydd th h ll f li t haddress the challenge of climate change.

• A socially-sustainable model that responds successfully to the challengeof ageing while guaranteeing quality full employment, equal opportunities,and social cohesion.

To achieve this, once the international financial crisis is over, the constructionsector (labour-intensive) must be replaced by a different sector (more intensive inhuman, technological and capital intensive)

31

Looking ahead (2): Sectors that will lead the future model

Some sectors (social and health, technology and green) are currently growing, even though we are facing the worst crisis in the last 60 years.

13 37617.829

24.06870.052

EducaciónActividades sanitarias

Administración Pública y defensa; Seguridad Soc. oblig.Actividades de servicios sociales sin alojamiento

9.4419.6059.72711.158

12.82913.376

Fabricación de productos informáticos, electró. ópticosActividades administrativas de oficina y activ. Aux. empresas

Asistencia en establecimientos residencialesProgramación, consultoría y otras activ. , InformáticasOtras actividades profesionales, científicas y técnicas

Educación

1 0751.750

3.9065.717

7.5138.862

Actividades auxiliares a los servicios financieros y segurSilvicultura y explotación forestal

Servicios de informaciónInvestigación y desarrolloServicios de alojamiento

Fabricación de material y equipo eléctrico

2082525846167651.075

Recogida y tratamiento de aguas residualesActividades de organizaciones y organ. Extraterritoriales

Actividades veterinariasActividades postales y de correos

Actividades de los hogares como empleadoActividades auxiliares a los servicios financieros y segur.

236124141

0 10.000 20.000 30.000 40.000 50.000 60.000 70.000 80.000

Extracción de crudo de petróleo y gas naturalActividades de apoyo a las industrias extractivas

Actividades de descontaminación y otrosExtracción de minerales metálicos

32

Looking Ahead (3): Changing the productive structure requires a consensus among all agents

Changing an economic structure is a long and costly process that requires

requires a consensus among all agents

Changing an economic structure is a long and costly process, that requiressignificant adjustments, and must be supported by all parties: Social Dialogue,Parliament and Regional Governments.

The first step in this direction was the set of policies announced by theGovernment :

• Elimination of the mortgage tax deduction (with an exemption for those if anincome below a certain level).

• Creation of a 5.000 million Euro fund to finance projects consistent with thedesired productive structure.

• Creation of a new 20.000 Euro ICO credit line to support private investmentin sectors that are a priority in the new model.

33

Thank you for your attention.