Spanish Prime Minister Jose Luis Rodriguez Zapatero broke off his annual holiday on Wednesday to preside over two meetings with his cabinet members intended to deal with an rapid economic slowdown.

He was to chair a meeting in Madrid later on Wednesday of his government’s economic affairs committee one day before he presides over an unprecedented full cabinet meeting in August which is usually reserved for holidays, a government spokesman said.

Last month the government predicted the economy will grow by just 1.6 percent in 2008 and 1.0 percent in 2009 as a decade-long economic boom based on the homebuilding industry comes to an abrupt halt. It expanded by 3.8 percent last year.

The economic affairs committee is normally presided over by Economy Minister Pedro Solbes. Among those taking part in the meeting will be Labour Minister Celestino Corbacho, Industry Minister Miguel Sebastian and Housing Minister Beatriz Corredor.

Some of the measures which will be agreed upon at the meeting could be approved on Thursday at the full cabinet meeting which will be headed by Zapatero, who the opposition has accused of inaction on the economic front.

In April the government unveiled an 18 billion euro (26.8 billion dollar) spending plan, which includes income tax rebates and funding for public works, which is aimed at reviving the economy.

The slowdown has led the unemployment rate to hit 10.44 percent in the second quarter, its highest level in more than three years, while the yearly inflation rate hit 5.3 percent in July, its highest level in over a decade.

Zapatero, whose approval ratings have been hurt by the worsening economy, had been on vacation with his family in the Donana national park in southwestern Spain.

2008 Copyright AFP