11 billion euro boost for Spanish economy

The Spanish government has announced an 11 billion euro plan aimed at boosting the economy and halting falling property prices.

Part of the European Union's (EU) 200 billion euro stimulus announced earlier this week, the plan is aimed at easing the effects of the financial crisis in the country.

Much of the money will be invested in infrastructure and public works, said prime minister Jose Luis Zapatero, while 300,000 jobs would also be created.

This will come as a boost to owners of property in Spain, who have seen the value of their homes tumble in line with the country's shrinking economy.

The package represents 1.1 per cent of the country's gross domestic product (GDP) and follows demands by the European Commission that all EU members should spend 1.2 per cent of GDP to fight the downturn.

Earlier this week, Spain was unveiled as one of the most popular destinations for British homebuyers in a report by Shelter Offshore, which suggested that a host of properties were now available at "knockdown prices" in the country.