Spanish Prime Minister Adolfo Suarez announced in Madrid on Thursday (22 February) that his country's stringent programme to beat its economic problems was beginning to bear fruit.
Spanish Prime Minister Adolfo Suarez announced in Madrid on Thursday (22 February) that his country's stringent programme to beat its economic problems was beginning to bear fruit. For instance, inflation had been cut in half, and Spain's balance of payments deficit much reduced.
SYNOPSIS: Senor Suarez's announcement came at a business conference attended by European businessmen and geoffrey Rippon, leader of Britain's opposition Conservative Group in the European Economic Community Parliament. The two-day conference was organised by the British newspaper, the Financial Times. In his inauguration speech, the Prime Minister said inflation, which had been running last summer at an annual rate of 30 per cent was now down to 15 per cent. He also announced that Spain's balance of payments deficit had been cut by over 1.8 billion dollars in the past year, due to an 11 per cent export increase.
Senor Suarez said foreign invest investment in Spain had also increased since last summer, with foreign reserves now above six million dollars. He attributed the economic successes to last October's pact between the government and opposition parties, which held down wages and prices in return for promises of political reforms. But he stressed that the economy still faced a difficult time in the coming months.