Trade and Industry Minister, Miguel Sebastián, today confirmed the introduction of financial incentives of up to 2000€ for people wanting to buy a new or used car in Spain.

The incentives form part of the government's Plan 2000E and guarantee a discount of at least 1500€ across the country, with as much as 2000€ being discounted in Aragón, Asturias and Cantabria.

The government has earmarked 100 million euros to finance the Plan 2000E for a year or approximately 200,000 car sales.

The scheme relies on the collaboration of car manufacturers and applies to individuals, self-employed people and small and medium-sized businesses (PYMEs) provided that the car purchase price is less than 30,000 euros.

The incentive for buying a second-hand car is only 500 euros since it does not comprise any finance from the manufacturers.

The scheme has been welcomed by the car industry, but heavily criticised by Greenpeace and other groups environmental groups like ConBici, a confederation of 47 groups in favour of pedal power across the country, who object to 'paying for their neighbour's car'.