Only the United Left voted against the government's emergency plan to restore confidence in the financial system, which, president Zapatero said, will come into effect by the end of next week.

It is planned to create an emergency fund of between ten to thirty million euros that will be used to buy up shares in struggling banks and building societies before the end of the year.

During his address, Mr Zapatero also explained that a plan to top up the fund to a maximum of fifty million euros, has been included in the revised version of the national budget, which will be debated later today.

The plan was backed by the main conservative PP opposition party, whose leader, Mariano Rajoy, justified his support by saying he was acting out of a sense of "responsibility," but claimed that the measures were insufficient to help hard-up families and small and medium-sized companies.

In response, Mr Zapatero argued that families are already benefiting from falling inflation and mortgage rates, and that the cash injection would enable lenders to free up credit for small businesses.

Zapatero sets about approving euro-zone crisis measures
By: thinkSPAIN
Monday, October 13, 2008

President Zapatero has called an emergency cabinet meeting this morning to explain and approve the measures agreed at yesterday's euro-zone summit in Paris to confront the global financial crisis.

Earlier, he phoned opposition leader, Mariano Rajoy, to keep him abreast of the situation, and to confirm the time and date of their next meeting- tomorrow, 5.30pm at the Moncloa Palace.

It was agreed at yesterday's Paris summit that individual governments should use public money to buy preference shares in those banks at risk of going under, and guarantee inter-bank lending until the end of 2009 to kick start demand in a market currently paralysed by lack of confidence.

Sarkozy calls euro-zone crisis meeting
By: thinkSPAIN
Saturday, October 11, 2008

Late yesterday evening, French president Nicolas Sarkozy, announced an urgent meeting of euro-zone leaders to analyse the worsening economic crisis with a view to agreeing a coordinated strategy.

His decision followed a suggestion made by Spanish president, José Luis Rodríguez Zapatero, who floated the idea at a lunchtime meeting at the Elysée Palace.

The purpose of the meeting, that will start at 5pm tomorrow afternoon at the Elysée Palace - just three days before the next European Council summit - is to "define a joint plan of action for the euro-zone and the Central European Bank (BCE) to combat the financial crisis."

Accordingly, the meeting will also be attended by the president of the European Commission, Jose Manuel Durâo, and BCE boss, Jean Claude Trichet.

Zapatero confirms rescue package
By: thinkSPAIN
Wednesday, October 8, 2008

President Zapatero called a press conference at the Moncloa Palace yesterday evening to confirm that the Spanish government will guarantee personal savings up to a new maximum of €100,000 euros. A €30 billion fund, which can be increased to €50bn, will also be created by buying "healthy" bank assets to ensure they can continue lending.

Spain's unilateral decision was announced after European Finance ministers finally agreed yesterday to raise the maximum savings guarantee by €30,000 to €50,000 euros.

In an interview on COPE radio later yesterday evening, PP opposition leader, Mariano Rajoy, said that he fully supports the government's initiative, but pointed out that the emergency fund "will not fall out of the sky," but will have to come from "the pockets of Spanish taxpayers," adding that he would like "detailed talks" to ensure that the cash is used to help hard-up families and small and medium-sized companies, and not just "three or four" household names.

Govt. to raise personal savings guarantee
By: thinkSPAIN
Tuesday, October 7, 2008

According to a Moncloa Palace source, the government is poised to announce a rise in the maximum guarantee for personal savings from the €20,000 euros currently stipulated in the Guarantee Fund.

The decision was taken following president Zapatero's meeting yesterday evening with representatives from Spain's largest banks (third photo), and is designed to reinforce the public's confidence in the "solvency and strength" of Spain's financial system. The new maximum has not been confirmed pending further meetings with trade union and business leaders.

Later yesterday, at a meeting of Europe's Finance ministers in Brussels, it was agreed to raise the limit to €40,000 euros although the governments of several euro-zone countries, including Ireland, Greece, Sweden, Denmark, Austria, Germany and Portugal, have already unilaterally pledged total guarantees.

The same presidential office source confirmed that Mr Zapatero, who was not involved in a meeting of Europe's G8 leaders (UK, France, Germany, Italy) in Paris yesterday, has accepted an invitation to meet Nicolas Sarkozy in Paris next Friday lunchtime to discuss the global economic situation.

Furthermore, it is hoped that a date for promised emergency crisis talks with domestic opposition leader, Mariano Rajoy (PP), can be confirmed this week though it will need to be preceded by a meeting between Finance minister, Pedro Solbes, and his conservative opposite number, Cristóbal Montoro.