Spain to compensate immigrants for returning home: minister

MADRID (AFP) — The Spanish government adopted a draft law Friday rewarding immigrants who volunteer to return to their country of origin, on the condition they do not return to Spain for three years, a minister said.

Under the new plan -- set to enter into effect by early November -- immigrants would be allowed to return to their country of origin and still collect unemployment insurance, said Labour Minister Celestino Corbacho.

To take part in the "voluntary" plan, one must be from outside the European Union, come from a country that has an accord with Spanish social security, and be legally out of work, Corbacho told a press conference.

Prime Minister Jose Luis Rodriguez Zapatero's government has been pushing the pragmatic approach of opening Spain's doors to immigration during periods of growth, and closing them during times of crisis.

After having one of the most dynamic economies in the eurozone, Spain is now on the edge of recession.

Corbacho caused a small outcry September 3 when he announced Spain would be doing almost no direct recruitment from abroad like it did in the past, when workers would arrive in Spain with a contract already in hand.

The minister said jobs would first have to be found for the growing number of unemployed people in Spain.

Unemployment, which dropped to 7.95 percent in mid-2007, reached 10.4 percent in the second quarter this year, largely due to a downturn in the housing market that saw many immigrant construction workers lose their jobs.

The number of immigrants in the country shot up from 500,000 people in 1996 to currently 5.2 million (including 2.2 million from outside the EU), out of a total population of 45 million.

The new plan would involve immigrants from the 19 countries with which Spain has bilateral social security agreements, said Spanish Deputy Prime Minister Maria Teresa Fernandez de la Vega.

These countries include former colony Ecuador and Morocco, from where many would-be immigrants leave.

In July, the government said the plan could affect 100,000 people.

Applicants are set to receive 40 percent of their compensation when they sign up, and 60 percent in their country of origin one month later.