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MADRID, Nov 25 (Reuters) - Spain's government will present a two-year plan on Thursday to boost demand in the country's flagging economy, the prime minister said on Tuesday.
The measures would be aimed primarily at 2009 and 2010, Jose Luis Rodriguez Zapatero told a forum organised by The Economist magazine in Madrid.
He also said any breaches of the European Union's Stability Pact should be temporary.
His comments came after he said last week that Spain will exceed the European Union budget deficit limit of 3 percent as it spends more to tackle the economic crisis.
Last week, an OECD survey said Spain's economy would contract in 2009 due to falls in house building and consumer spending and would make a slow recovery in 2010 as financial turmoil recedes and world growth resumes.
On Tuesday, Zapatero said he expected Spanish inflation to be 2.5 percent in November and to come in less in December.
Zapatero said he hoped some of the most pessimistic forecasts for the economy could be avoided as measures introduced in the United States and elsewhere took effect.
"We are perhaps the country in the (European) Union which has taken most steps to lower taxes," he said, adding that Spain had cut taxes by 14 billion euros so far this year. (Reporting by Jason Webb; Writing by Sarah Morris, editing by Mike Peacock)