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Spain's government approved a new law on Friday to boost productivity and lift the struggling economy's competitiveness over the next ten years. The Economic Sustainability Law, equipped with 25 billion euros ($34 billion) of funds, aims to shift Spain's economy away from construction activities towards more innovative industries such as renewable energy.
"This law implies being more innovative, more competitive...and highly global," Prime Minister Jose Luis Rodriguez Zapatero told reporters after a Cabinet meeting held in Seville. Spain has the highest unemployment in the European Union at almost 20 percent, large deficits, a heavily indebted private sector, and weak growth prospects after a construction-dependent economy was hit by the property and credit crises.

Copyright Reuters, 2010

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