Car-buying stimulus announced too early

The automobile market needs an economic and psychological stimulus according to entrepreneurs from the sector. For months they have been asking for another "plan Renove" in hopes of boosting car sales. Companies have proven that this kind of stimulus plan successfully creates jobs and drives sales within the sector in Spain and the rest of the EU. Declining sales in the domestic market is so serious (car title registration fell 20% in the first half of August even though the VAT is going up in September) that big measures are needed. Fortunately, it looks like José Manuel Soria understands this and is going to announce a Renove 2013.

Unfortunately, the minister announced his decision so early that car buyers have postponed buying a new vehicle during the months leading up to the measure. Government leaders need to exercise more prudence when discussing their plans.