* Biggest decline in joblessness since June 2001
* Consumer confidence up but still in pessimistic territory
* Government says fiscal stimulus taking effect
* PM says will not increase taxes by much
(Adds consumer confidence, Zapatero, background)
By Manuel Maria Ruiz
MADRID, July 2 (Reuters) - Spanish jobless claims fell for the second month running in June and consumer confidence rose as one of the world's largest fiscal stimulus programmes took effect, government data showed on Thursday.
The number of dole seekers fell by 55,250 in June, the biggest decline since June 2001, and the latest in a string of figures persuading economists that Spain might be nearing the bottom of a steep recession.
"This shows government measures are having an effect and is a sign that the economy, at least in the second quarter, is in better shape than in the first quarter," Prime Minister Jose Luis Rodriguez Zapatero told national radio.
The Socialist government has enacted one of the world's largest fiscal stimulus programmes in relative terms, worth 4.2 percent of gross domestic product in 2008 and 2009, which should push up public debt by 150 billion euros to 60 percent of GDP.
Consumer confidence, battered by high unemployment and the collapse of a housing boom, also rose in June, reaching 66.4 points from 63.8 in May, the Official Credit Institute said. This was above the record low of 46.3 touched in July last year, but still well below the 100 point level dividing pessimism from optimism.
The number of jobless, at 3.56 million, is still among the highest levels in the European Union, and would have been higher had it not been for the government-funded schemes which have turned city centres around Spain into building sites.
Under pressure from international credit ratings agencies, the government is looking to cut spending, but analysts say this will be easier said than done and that the economy could flag again once its fiscal life support is withdrawn.
In the last month, Spain has hiked tobacco and fuel levies, signalled more tax increases in 2010 and proposed axing spending to stop its budget deficit entering double digits.
But Zapatero said he was not considering further major tax hikes, and was instead hoping for a deal between unions and business to cut Spain's high production costs.
"We don't have any intention of raising taxes, and, in any case, if we did take some temporary measure, it would be very moderate," said Zapatero.
(Additional reporting by Paul Day and Jason Webb; Writing by Jason Webb; Editing by Ron Askew)