The Government announced its intention to “eliminate the most detrimental aspects of the 2012 Labour Reform” and plans to do it through a decree-law forcing the democratic institutions to the maximum. In the latest #FAESVideoanalysis Miguel Marín, the head of the economic area of the Foundation explains the positive performance of the reform since its entry into force and emphasises the contradictions that fly over the government's stubbornness with this issue.
_The Labour Reform is what is left for the Government to make its legacy visible, after the failure of the Budgets and the exhumation.
_Implementing adjustments is a matter of political marketing rather than economic rationality.
_The 2012 Labour Reform is holding up well to criticism: unemployment has fallen from 27 to 14 per cent, two million new jobs have been created and today there are almost 20 million employed.
_Criticism of temporariness and falling wages are not sustained. The records of temporality coincide with two socialist governments, the 2012 Labour Reform made temporary contracts more expensive whilst the control of salaries was prudent and responsible.
_The Labour Reform has not been tested yet: it will be during the next crisis when we will see if it provides the necessary flexibility to go through the cyclical oscillations of the economy without destroying large amounts of employment.
_Spain is facing way too many challenges to start changing what is already working. If there is one thing to do with the 2012 Labour Reform, it is to give it a second thought and abound in its positive aspects.