labour reform

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The OECD Makes A Full Amendment To The Approaches Of The Spanish Ministry Of Labour

The Secretary General of the OECD, Ángel Gurría, yesterday presented the “Economic Survey of Spain 2021” together with the Vice-President for Economic Affairs, Nadia Calviño. The document is an amendment to the labour policy proposed by the Spanish government in its entirety. It warns of the high impact of the coronavirus crisis on the Spanish economy and rejects a tax hike until the economic recovery is consolidated. It also asks…


Nadia And Yolanda, At The Boss’ Right And Left Hand

Fernando González Urbaneja | The second (Nadia Calviño) and third (Yolanda Díaz) vice-presidents of the Spanish government have a hard time putting up with each other; they hide it, but sometimes they betray each other. A gesture, a comment, a confidence… and the dissimulation vanishes. It happened yesterday in Parliament, over the “reversal of the labour reform” but it is well known to the usual interlocutors of the two vice-presidents….

The Bank of Spain warns pension spending will grow by 5 pct points of GDP by 2050 if 2013 reform is suspended

The Bank of Spain Proposes Reducing The Cost Of Dismissal And Adopting The Austrian Model

According to the Governor of the Bank of Spain, Pablo Hernández de Cos, NGEU funds may be used to facilitate the approval of structural reforms The setting up of a capitalisation fund for each employee to finance part of their severance pay in the event of dismissal is an example of a reform that is desirable for the economy as a whole, but costly for certain agents in the short run.

ERTES extension

The “Good” PSOE-UP Government: “We Will Never Again Tell People That They Have To Tighten Their Belts”

T.C. | Labour Minister Yolanda Díaz, whom Pablo Iglesias has designated as his successor in the (third) vice-presidency of the Government, yesterday presented the plans for the labour reform she intends to push through before year-end. With or without the agreement of the so-called “social partners”, i.e. trade unions and employers. “The labour changes will be published in the BOE before the end of 2021. Prime Minister Pedro Sánchez and…

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Chancellor Merkel should remember that Spain is not Germany

FRANKFORT | That is the view from Berlin: the biggest problem Germany contends with is Europe. And this is so particularly because of this fact, more than 17 million people are unemployed in the euro zone. But while in Austria the unemployment rises to 4.2% and 5.7% in Germany, the Spanish labour market suffers the tragedy of jobless figures that come to 23.6%. And there is no prospect of improvement. The problem is…


What the City of London reads is the Telegraph, not the FT!

A shocking fact, from the revolving door here at via Spain’s business paper Expansión, and a worth-noting point for readers tired of stereotypes: former Financial Times correspondent in Madrid Tom Burns has news for the pink’un-obsessed continental Europeans. What’s the dead-tree media brand of preference in the City of London? Not that one. Burns says City types love the finance pages of The Daily Telegraph, instead. “[In Europe] those in…

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Italian prime minister praises Spanish labour reform

MADRID | Mario Monti explained in an interview to the daily newspaper El Mundo that the Spanish labour reform ‘goes in the direction’ of the one he wishes to implement in his country. The Italian prime minister also comments on the reforms his government has carried out in Italy, such as the pension reform and he praises the Italian people’s ‘mature attitude’ when “it came time to accepting the sacrifices that…

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Untimely circumstances for undertaking reform plans

By Juan Pedro Marín Arrese, in Madrid | You don’t usually pick up the most suitable moment to undertake a widespread reshuffle of ill-functioning markets. Stiff political and social resistance leads to abandon any plan or hope to do it. As shelving problems don’t settle them, reforms are only accepted under the pressing need to redress a desperate situation. As a result, measures tend to inflict more damage and reap fewer…


When president Rajoy makes decisions

By Joan Tàpia | At the end of 2011 and after taking office, Mariano Rajoy’s government made its first decision: a €15 billion budget adjustment which implied that increasing taxes, especially personal income taxes, was essential –something he said he would never do. During the election campaign, the PP also assured that it would not lower the cost of dismissal. Now, the law-decree of February 11 does precisely this and takes…

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Friday’s graphic: let’s compare unit labour costs between us

A working paper by professor José Luis Mechea on possible exit scenarios from the current international economic crisis brings this already known but not fully appreciated picture. Here you are how unit labour costs have evolved since 1999 in a few euro zone countries, France, Greece, Ireland, Italy, Portugal and Spain, in comparison to Germany. Obviously, there must be some link with this other graphic… Yes. Unemployment.