14-07-2008 : Balearic action against the crisis
INFLATION hit a 13-year high in Spain yesterday prompting the Balearic government and the Council of Majorca to announce that plans to cushion the impact of the looming recession and prop up the local economy are being drawn up.
Last month, the cost of living here in the Balearics went up a further 0.6 percent, in line with the national rise while regional inflation since the start of the year has hit 2.7 percent and the cost of living is currently 4.7 percent more expensive than it was this time last year.
Yesterday, the Balearic spokesperson Margarita Najera pledged 70 million euros to the local construction companies to which the government owes the best part of 100 million euros.
In total, building firms are owed over 223 million euros with the Islands Councils and municipal authorities liable to cover the outstanding debts or face legal action, as the Bulletin reported yesterday.