Joan Tapia | It is vital to maintain a peaceful social climate in the coming months and to inspire confidence in the economic agents, a sine qua non condition for the preservation of employment and investment. That is why the much talked about complete overturning of the labour reform has been postponed and only “the most harmful aspects” have been changed. But the deadlines are running out and the most radical sectors are demanding that sectorial agreements take precedence over those with companies (which would reduce the flexibility of the economy.)
spain labour reform
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.”
J.P. Marín Arrese / Looking for any rational clue in the extricate discussion on labour relations seems a hopeless aim. One even wonders why economists still call it a market when it departs so obviously from any standard pattern.
Moody’s warns that a broad reversal of reforms, especially of pensions or the labour market, would exert downward pressure on its rating for Spain.