Wednesday, June 29

Sánchez promises Brussels that the labor reform will not be done without CEOE

Brussels squeezes Spain and the contradictory messages on the labor reform do not help the Government to continue receiving the ‘European manna’. Yolanda Díaz’s offensive to repeal the changes introduced in 2012 they make community authorities uneasy, defenders of a norm that they consider key and whose modification they would only accept if it were carried out with dialogue and consensus between employers and unions. And this is the message that the Prime Minister was forced to launch yesterday, in an event organized by the Ministry of the Economy to which senior officials and economic experts from the international scene, as well as representatives of the European Commission, were summoned. The labor reform will be carried out «as it is done in Europe, with dialogue

social and consensus vocation, “said the chief executive, clearly aligned with his economic vice president.

In front of the Nobel Prize in Economics Joseph E. Stiglitz, the Secretary General of the OECD, Mathias Cormann, or the Chief Economist of the World Bank, Carmen Reinhar, as well as the EC Commissioner for Economics, Paolo Gentiloni, and the First Vice-President herself , Sánchez described as “counter-reforms” to the labor and pension regulations launched by the PP in 2012 and 2013. And he assured that “the entire Government is committed to addressing the modernization of the labor market.” He detailed three objectives: “to eradicate precariousness, boost competitiveness and restore balance in the negotiation between company and workers.”

The president’s words come at a time not only of high tension within the coalition, but also with the vigilance of Brussels at highs since European funds were unblocked. The proximity of the end of the term to negotiate the scope of the labor reform has aired the shame of an internal cold war, which has been brewing more intensely since the Executive sent the reform plan to Brussels, and which has now risen in rank : the traditional confrontation between Calviño and Díaz It already involves the president and senior members of the European Commission. Brussels attends with surprise the double discourse within the divided government and that is why yesterday he wanted to hear all the versions with separate meetings. The European Commissioner for the Economy held meetings with Sánchez, Nadia Calviño, Yolanda Díaz and José Luis Escrivá, from whom he asked for an account on the status of the pension reform.

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Sánchez must comply with Brussels while quelling the fire within the coalition. This struggle has two aspects: political and economic, and both are linked together by a wide network of communicating vessels. In the first, the objective is to lead the speech of the repeal of the labor reform, a key issue for United We Can and Yolanda Díaz, who has squeezed this message to the fullest, causing even commented gestures of disapproval from Calviño in Congress. Yesterday, Díaz raised the tone of his speech and asked the PSOE to “clarify” what it wants to do with the labor reform of the PP. “Different statements are being made,” he pointed out.

The story about labor regulations is also essential for the PSOE and in fact the party has struggled these days not to lose ground with statements such as those of its deputy secretary general, Adriana Lastra, stating, for example, that the Government is going to repeal the labor reform ” and the PSOE is going to do it ». A position that Sánchez had also assumed, but which he quickly had to qualify due to the commotion generated in Brussels.

Hence her alignment yesterday with Calviño, who maintains a much more restrained position, and to the taste of Europe, with respect to the labor norm of the PP: she never speaks of repealing but of achieving “A balanced package” of measurements. And hence also Sánchez’s attempt to make the labor reform go through the Economy, something that Díaz resoundingly rejects. The Galician wants to take the reins of the changes and has already said that it will do so with the agreement of the CEOE or without it. Sánchez, on the contrary, yesterday assured businessmen a key position in the negotiation. The concern in Brussels for this reform has been transferred directly to the business world on several occasions. This is precisely the trick that Calviño is playing now, who has intensified his contacts with business leaders in recent days. In parallel, Yolanda Díaz was applauded amid shouts of “President, President!” in the congress of CC.OO. held this weekend, a moment that the unions took the opportunity to remember that if the labor reform was not repealed there would be mobilizations.

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There will be no going back

It should be remembered that just after unlocking access to recovery funds in our country, the Commission left in writing and without a doubt its refusal to reverse the labor reform of 2012 and 2013, that is, the “Labor reform of the PP”. “The most recent report on Spain recalled the need to preserve the elements of the labor market reforms introduced in 2012-2013 that have played an important and recognized role in promoting the job-creating recovery that began in 2014,” added the Commission in a footnote of the document prepared by the Commission services.

And the fact is that its relationship with the Government is not as idyllic as it is intended to appear, taking into account that the Commission has not yet managed to define and close the calendar for the implementation of the reforms that Sánchez has promised to carry out before. to receive recovery funds. As ABC advanced, at this point Europe does not know what the Executive plans to do on matters such as labor reform, or on what dates, or in what way, and he insists that this document with the calendar and specific milestones must be made public. And until the roadmap is clarified by the Government, it will retain the 10 billion that it should release in December.

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