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Pedro Sánchez and Charles Michel

Spanish economy 8th October 2020

Spain Aims To Create 800,000 Jobs In Next 3 Years; To Use €72 Bn From The European Recovery Fund

The Government has set a target of creating 800,000 jobs over the next 3 years (in the period 2021-23). To achieve this goal, it will use 72 billion euros from the European Reconstruction Fund (60 Bn in the form of non-refundable transfers and 12 Bn as loans with conditionality, out of a total of 140 billion). It is foreseen that 37% of the funds will be earmarked for green investments and 33% for digital transformation. As a result, it is estimated that these areas will contribute +2.5 pp to GDP growth.

european union flag

Spanish economy 7th September 2020

Spain Expects To Receive The First Tranche Of The SURE Fund Before 2021

Banca March | Pedro Sanchez’s government hopes that the European Council will approve the Commission’s proposal on the SURE fund this September, in order to access the first tranche of financing this year. Spain’s request for financing in the first tranche is valued at 21.325 billion euros and is already approved by the European Executive. This will be used to cover the expenses associated with employment until September 30th.

unemployed august

Spanish economy 3rd September 2020

Spain Manages To Create Jobs In August For The first Time In The Historical Series

The Social Security affiliates increased in August by 6,822 on a monthly average after rising by 161,217 in July. This is the first increase in an eight month of the year since the historical registers started in 2001. “In August there is usually a sharp drop in affiliation due to the destruction of many seasonal jobs at the end of the month, but this year jobs have recovered due to the progressive re-opening of companies”, says Funcas.

consumption recovery 1

World economy 29th June 2020

Consumption: Support Point For Recovery

José Ramón Díez Guijarro (Bankia Estudios ) | The first weeks of the opening of the economies are serving to gauge the response of consumption, a key variable in determining the profile and intensity of the recovery. In the US, the fiscal programmes for aid to families injected more than 300 billion dollars into disposable income in the second quarter. In Europe, instead of using direct aid as in the US, they have preferred to activate temporary employment suspension programmes (ERTE in Spain, kurzabeit in Germany, etc).

US jobs

World economy 11th May 2020

US jobs: Steepest Monthly Drop Since The 1930S Depression

Janwillem Acket (Julius Baer) | After initial jobless claims topped 33 million since 12 March, US labour market statistics for April showed massive job losses. As was to be expected, the usually cyclically robust services were a major source for redundancies, because they particularly suffered from the lockdown measures. However, there are reasons to expect that April 2020 could mark a low as fiscal and monetary incentives, next to a relaxation of the lockdowns, are prone to start a rehiring wave again.

unemployment spain

Spanish economy 5th May 2020

Spain Loses Almost 950,000 Jobs Since The Beginning Of The Coronavirus Confinement

The Social Security has lost 947,896 affiliates since the beginning of the COVID-19 crisis and up to end-April, leaving the total number of contributors at 18.39 million. Meanwhile unemployment grew in these last two months by more than 585,000 people, exceeding 3.8 million unemployed. The Ministry of Labour has not included the almost 3.5 million Spaniards protected by a situation of total or partial suspension from work via temporary layoffs.

Spanish SMEs provide jobs for 71% of social security contributors

Spanish economy 26th March 2020

Spain Approves 20 Bn euros In Guarantees For SMEs And Self-Employed Workers

Half of the line of guarantees’ first tranche, amounting to 20 billion euros, will be earmarked for SMEs and the self-employed, guaranteeing 80% of new loans and financing renewals. The remainder will go to medium and large companies. In the latter’s case, up to 70% of new loans will be guaranteed, while loans’ renewals will be guaranteed up to 60%. Once the resources are used up, the government will automatically activate new tranches of credit lines up to the maximum target of 100 billion euros.

ursula pedro

European politics 27th February 2020

The EC Asks Spain Government For Prudence With Labour Reform Review

The European Commission (EC) urged the Spanish government to “carefully” evaluate the potential impact of any modifications to the 2012 labour reform and to “preserve “the most positive aspects of it, which “supported solid job creation” during the recovery phase. Citing a recent study from the International Monetary Fund (IMF), it states that “the labour reforms adopted in 2012-13 in response to the crisis have played an important role in promoting a rich recovery in employment which began in 2014.”

mercado de navidad

Spanish economy 26th December 2019

Spanish GDP growth in 4Q (0.4% t / t) validates the 2019 slowdown

BBVA Research | At the end of the year, the Spanish economy could register three quarters in a row of 0.4% growth t / t, below the growth observed since the beginning of the recovery (0.7% t / t, on average). In this context there is a stabilization of job creation, a volatile composition of demand and low inflation.