Sánchez promises a “more dynamic” labor market to receive European funds




Economic recovery will come to Spain at the rate set by vaccination and European funds. And, for the latter to be a reality, Spain must implement a concrete reform plan that will dilute its image of direno “lost fund” that was established months ago. In the final stretch so that the fine print of this reform plan is known, the President of the Government, Pedro Sánchez, has avoided talking about repeal the labor reform and, nevertheless, it has promised an «update of our regulations, to achieve a labor market that has to be more dynamic, more resistant, more inclusive and that addresses all the problems of digitization as structural that we have dragged on for decades.

In addition to the labor changes that will be linked to different components of the plan, the reform of the pension system and the fiscal reform will be key in these sections of the recovery plan that the Council of Ministers will study tomorrow and that a day later, on Wednesday, Sánchez will present in Congress. As the president explained today at the inauguration of the economic forum Wake up, Spain, organized by the newspaper ‘El Español’, the final approval of the reforms demanded by Brussels will be within “a few days” and will include 212 measures, of which 110 will correspond to investments and 102 to reforms.

The document, according to Sánchez, comes after “months of a lot of internal work and intense dialogue with social agents and economic partners and with the European authorities themselves,” Sánchez said. However, the truth is that many more shadows fall on him than lights. In the list of this hundred legislative projects announced by Sánchez there are many initiatives that are already underway, such as the teleworking law, riders, time registration or climate change, but the most thorny, such as the modernization of the pension system and the labor market does not yet have the support of the social agents, something key for Brussels.

And at the moment it does not seem that the agreement will be close. Regarding pensions, the agenda set by Minister Escrivá is not shared by employers or unions. As for the labor market, the claims of Vice President Díaz, who seeks to repeal the 2012 reform, have met with the resounding refusal of businessmen. The CEOE is willing to negotiate on the galloping youth unemployment, also on a hiring reform that allows ending the duality that exists in the labor market between temporary and indefinite, but they will not contribute to reversing a single measure that reduces flexibility.

Thus, as detailed by the president, after the Council of Ministers, it will be the turn of the interministerial commission that was created for this purpose, and the small print will arrive on Wednesday in plenary session. Despite the optimistic tone with which Sánchez described the plan – “it will be a success story for Europe and for Spain”, he said, after asking that “this unique and historic opportunity be taken to carry out crucial reforms” – there are little confidence in the business world.

Regarding investments, the volume of public investment that will be mobilized between this year and 2023 will be almost 70,000 million euros, with a “very clear” objective to promote recovery “immediately”. Sánchez has pointed out the importance of generating the dragging effect of private investment in strategic issues. “It’s about creating bigger companies and more jobs.”

Sánchez has also boasted of the response given by the Executive to the crisis and highlighted that 20% of GDP has been mobilized. Of course, the economic recovery has relied on the pace set by the vaccination campaign. “The Government is focused 101% on vaccination and recovery,” said the president, after reeling off the vaccination plan that he announced last week, and which is expected to 70% of Spaniards are immunized at the end of August.

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