Spain to invest €500 million more on infrastructure projects

On August 18, Spanish Finance Minister Elena Salgado announced that Spain will spend €500 million more than planned on infrastructure projects, financed by spending cuts in other areas.
 
Minister Salgado stated that the new higher spending limit is the result of improved market conditions which have allowed the government to reduce its debt costs, and would not affect the deficit-reduction goals.
 
Spain's Transport and Development Minister Jose Blanco said that the €500 million will cover some 50 projects which were suspended due to austerity measures. One priority for the extra spending will be the A8 motorway linking northern Spain to France and the rest of Europe.
 
The statement came as figures showed a surprise increase in activity in Spanish construction, amid a general recovery in the European building industry. As SteelOrbis previously reported, in June this year, output in the Spanish construction industry rose 7.2 percent as compared to the previous month after a 0.2 percent decrease registered in May, while the year-on-year increase stood at 18.6 percent.
 
Spain's Prime Minister Jose Luis Rodriguez Zapatero had said last week that the government may have room to reverse some of the €6 billion in planned cuts in infrastructure spending after interest rates for government borrowing declined.