public sector

3. Public debt

Government, Trade Unions Agree On Record Offer Of Public Employment, With Almost 30,000 Vacancies

The Ministry of Finance and Public Administration reached an agreement with the trade unions on Monday to launch the largest public employment offer in the history of the General State Administration, with 29,578 vacancies. As reported by the Independent Trade Union and Civil Servants (CSIF), the General Union of Workers (UGT) and Comisiones Obreras (CC.OO.), the negotiated offer does not include the State Security Forces and Corps, the Armed Forces…


pedro sanchez reflexiona

Spending On Public Salaries Breaks Records And Reaches Almost 150 Billion Euros

The wage bill of Spanish public administrations exceeded all historical records last year. According to the official INE National Accounts figures published today in the newspaper El Economista, in 2021 the amount of salaries of public sector employees (civil servants along with other categories of public sector staff) plus their payments for social security contributions amounted to 147.363 billion per year. And with inflation soaring, everything points to the fact…


labour market

Spain: Public Employment Does Break Records (+6.8% In Two Years) With A 31% Temporary Employment Rate, 10 Points Higher Than In The Private Sector

The number of public employees has grown by 6.8% since 2019 and is at record highs, while the private sector is still one million short of its 2007 record. It is true that, taken together, public and private employment, the aggregate number of employed (20.18 million) does exceed the pre-pandemic number by 218,000. But it is public sector employment that has broken historical records and is 6.8% higher than before…


Just Sanchez

The Public Sector Owes 90 Billion To Its Suppliers, As It Did In 2011

According to the daily Expansión today, the commercial debt of Spanish public administrations with their private suppliers rose to 7.6% of GDP in the third quarter of 2021: “A study by the firm Estudio Económico shows that the commercial debt of public administrations grew by 19.907 billion euros in the third quarter of 2021, 28% with respect to the same period of the previous year. The total figure would stand…


High speed AVE trains

Renfe, Correos, Adif, Paradores… Public Companies Will Continue To Make Losses

As reported by Elena Ramón in the newspaper Expansión, Correos, Adif, Renfe and Paradores are extending their losses for another year. However, all of them assure they will increase revenues next year. The General State Budget for 2022 presented by the Government forecasts that Aena and Enaire will return to profit next year and join Puertos del Estado and Loterías, two entities which are resisting all setbacks. But Renfe, Adif,…


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The trouble with the State reform in Spain

MADRID | A frozen fish processing company from Galicia, in the north of Spain, was recently awarded the Green Card by the US’ Food and Drug Administration. The FDA isn’t exactly easy-going, but the Spanish firm has already access to the US market and extensive presence in Europe, including Russia. The news isn’t a surprise, of course: the Spanish food industry is successfully competitive, its exports have risen by 8.4…


Spain Parliament

It’s the public sector restructuring, Spain!

Unless the Spanish government tackles the reform of the State administration, it is bound to follow the fate of Greece, Ireland and Portugal. Any positive impact of hints coming from the European Central Bank about lending a hand to maintain the country’s access to the markets will eventually fade away. Indeed, it is happening again. Most analysts in the financial City of Madrid said so in as many words in…


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Growth concerns in Spain will sooner or later re-surface

MADRID | Nobody seems to pay much attention to bad news these days. The stock market shows a bullish bias, recovering from the lows it plunged into driven by fears of utter collapse. Yet, recession has intensified its slide, the second quarter showing a 0,4% GDP decrease. With no prospects of redressing the downturn till the middle of next year, at the best, future outlook doesn’t provide much room for optimism….


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Madrid plans to streamline public sector seem merely cosmetic

By Juan Pedro Marín Arrese, in Madrid | Spain’s government has pledged to close down 80 publicly owned enterprises, an impressive figure at face value. But most of the adjustment is grounded on the simple recipe of merging subsidiaries into mother companies. Thus the only tangible savings amount to allowances paid to suppressed Boards of Directors. A negligible €1 million cut off that will add very little in terms of budgetary…


No Picture

Don’t blame Spain’s public sector payroll: it’s 6pc smaller than the EU average

Catalan economist Vicenç Navarro delivers view points whose argument sounds completely contrarian at this stage. While austerity may be debated over –at which degree should it be imposed and how quickly, so further spikes in sovereign debt can be avoided?–, the consensus bears little doubt: public investment must be dramatically lowered. It is the right medicine. But confronted with an increasingly stalled productivity and a disquieting unemployment rate, those of…