Spain's well-documented economic crisis continues to worsen, as figures suggest that the country's debt will rise from 85.3 to 90.5 per cent of annual economic output in 2013, but Mayor of Madrid Ana Botella claims that hosting the Games in 2020 would help in repairing the country's financial situation and providing a lasting legacy to the country's economy, drawing parallels to the London 1948 "Austerity Games" which boosted Britain's recovery following the Second World War.

Alejandro Blanco, President of the Spanish Olympic Committee and of Madrid 2020, also focused on the benefits to the economy that a Games would have on a country which currently has a staggering unemployment rate of 26 per cent, with the rate of unemployed youths currently standing at over 50 per cent.

Blanco referred to the Games as "fertile terrain, not just for startups but also for established companies".

"Sponsors are attracted by the unparalleled opportunities for publicity and investors see the possibilities to make significant profits." he said.

"They create jobs, especially among the under 30s, who need opportunities the most and who are most needed by any country.

"They stimulate tourism and increase consumption"

Alejandro Blanco , President of Madrid 2020 and the Spanish Olympic Committee,  Ana Botella, the Mayor of Madrid, and  Fernando Moroy, the director of institutional relations of banking group La Caixa, launch the new initiative for small businesses

According to Botella, the aim of the scheme is: "to promote Madrid at the international level and consolidate its reputation as a global city".

She added: "This initiative means that Madrid will figure on the radar of people who want to open a new business, boosting companies with great potential that otherwise wouldn't see the light of day."

Botella also revealed that a pilot scheme featuring 48 participants would launch this week.

Madrid are currently seen as outsiders in the race to host the 2020 Olympics by British bookmakers, who see the Spanish capital at a best price of 10/1, with Tokyo currently favourites at 8/11 and Istanbul ranked second-favourites at 11/5.

The announcement on which city will host the 2020 Olympic Games is due to be made at the International Olympic Committee (IOC) Session in Buenos Aires on September 7.

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