So far, not much is known about the new socialist government’s intentions relating to the construction industry and the infrastructure investments, but they have given some general guidelines: To lower the housing prices, with laws to promote the rental market.  In addition, the new Government will finance some social houses (c 90,000 units per annum). To carry on with the current 2000-2006 Infrastructure Plan. To stop the development of new toll motorways and further privately financed infrastructures. The strong backlog for all the construction companies (15-20 months of construction work, mainly in Spain) support a robust operating performance of these companies in 2004 and part of 2005. This, together with committed and budgeted EU funds for the next three years (28% of total funding of the Euro 114bn Infrastructure Plan), allow Deutsche Bank analysts to maintain a positive view towards the sector.