The Spanish government has reached a draft law with unions UGT and CCOO to reform unemployment protection, including benefits and subsidies. This bill will now be processed in Congress of Deputies for approval to access European funds. Second Vice President and Minister of Labor, Yolanda Diaz, emphasized that unemployment benefits are a right for workers, not just money.
However, the Ministry of Labor was unable to secure the support of CEOE and Cepyme due to their concerns about certain measures. Employers issued a joint statement expressing their dissatisfaction with the lack of negotiation and economic report accompanying the reform. They criticized the lack of transparency in the process and accused the Government of failing to reach a real agreement.
The proposed reform aims to increase the number of protected groups, simplify access to subsidies, and make unemployment benefits compatible with part-time work. Additionally, the government commits to designing a plan to combat long-term unemployment among those over 52 years old. Despite changes made in the bill, including maintaining the 125% Social Security premium for older worker subsidies, there is concern that meeting deadlines may be impossible by May 20th set by European Commission.
If this deadline is missed, it could lead to partial disbursement of European funds. However, if approved within six months, Spain will receive full funding from Europe.
Overall, this reform aims to improve unemployment protection in Spain by making benefits more accessible and equitable for a broader range of individuals.