Spain plans to shake up labour market

The Spanish government unveiled labour market reforms on the 10 February 2012, hailed as the most radical in the country’s post-dictatorship history as it battled with the highest level of unemployment in the European Union.

Spain’s cabinet approved new laws to lower the cost of sacking workers and offered tax incentives for businesses to hire the out-of-work, in hope that the measures would rekindle growth and cut the country’s budget deficit.

Employer groups CEOE and CEPYME welcomed the reform as a 'step in the right direction' to create a 'more flexible and efficient labor market'.

The country’s main unions, UGT and CCOO, said they would meet on the 11 February 2012 to discuss the reform and give their reaction.

El País, 10.2.12: Labor reform makes it cheaper to fire workers http://elpais.com/elpais/2012/02/10/inenglish/1328905068_485134.html

ESO: Background information: Spanish business grows impatient for reforms http://www.europeansources.info/record/spanish-business-grows-impatient-for-reforms-spain-stops-new-energy-subsidies-in-austerity-drive/

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