The coalition between the Socialist Party and the extreme left Podemos raised serious doubts on its ability to run the economy. Its agreed platform trumpeted a massive increase in social expenditure, coupled with tax rises plus extensive public regulation in many key markets, ranging from power supply to housing rentals. No wonder it aims now to pedal back to check the foreseeable loss of confidence.
spain minimun wage raise
The times of wage containment are beginning to be left behind in Spain. The ILO and the OECD themselves favoured an increase in the minimum wage, basing itself on the slight improvement in productivity over the last two years, but the first question is whether the proposed increase in the minimum wage is possible.
Popular chairman Angel Ron’s proposal to raise salaries in line with productivity in order to speed up the consolidation of economic growth is clearly at least worthy of a discussion. In the short-term, it would have repercussions not only on corporate profits but also on improving confidence, the recovery in consumption, the increase in production and job creation.