The smic will increase by 22% in Spain, it is significantly more than the 100 euros Emmanuel Macron.
How do the Spaniards? Why do not we do the same thing at home?
A rise of 22% in France, it would make the smic 1,800 euros gross against 1,500 euros.
In Spain, the smic is significantly lower at 858 euros, so it is far removed from the reality of wages. It represents
40% of the median wage against 60% in France.
It was time that we put a little clock on the clock in Spain and that we increase the smic that will go to 1,000 euros (against 1,500 home).
READ ALSO - Spain: 22% increase in the minimum wage in 2019
But why do not we do the same thing at home? It's a question of competitiveness.
It is a coincidence, but it turns out that the smic is exactly the same in France and Germany, 1.498 euros gross in both countries. If we increase the smic of 22% in France, the made in France will be 22% more expensive than the "made in Germany" and will therefore not sell anymore.
Moreover, we can see our competitiveness problem.
France has the same cost of production as in Germany with the same smic whereas the quality of the made in France is considered inferior. While in Spain, the minimum wage and costs are much lower.
It is the economist, Patrick Artus, who summarizes the situation with this devastating formula: the "made in France" are the German prices, but the Spanish quality.
Hence the difficulty of further increasing wages at home and that is why Emmanuel Macron did not directly increase the SMIC. It has increased the activity premium which is state-paid aid.
But the Smic does not move, it will just be upgraded to inflation.