• Projections: The Bank of Spain alerts Sánchez about another increase in the SMI and the deviation from the pension deficit
  • Forecasts: The Bank of Spain warns: the Government will barely reduce the deficit and unemployment stagnates

The Bank of Spain notes that the labor reform carried out by Mariano Rajoy, and that Pedro Sánchez wants to reverse, allows the Spanish economy to create employment with lower levels of growth. " The GDP growth threshold from which employment is created would have been slightly reduced in the most recent period , to be somewhat below 1%," explains the body in the document Relationship between GDP growth and employment that He has published today.

The agency led by Pablo Hernández de Cos argues that the PP regulations will also help Spain destroy fewer jobs in the event of possible crises. " The labor legislation passed at the beginning of this decade developed mechanisms to favor that the adjustment in the labor market in the low phase of the cycle falls to a greater extent than until now on variables other than employment itself, which should contribute to attenuate job losses at the time the economy could eventually enter a recessionary period, "he develops.

Specifically, the Bank of Spain estimates that during the period 1995-2008 the economy required a growth rate of around 1.2% in order to create employment, while between 2014 and 2019 the figure would be close to 0.8% " While it would be necessary to wait for a complete cyclic phase to be able to ensure that these values ​​are different, " qualifies the regulator. And he adds that in this more dynamic behavior, in addition to the labor reform, the differences between the two expansive phases analyzed could also be affected, or the possible effects derived from the intense destruction of employment during the crisis.

Reverse the reform

In this way, the Bank maintains the defense that in previous occasions it has already carried out of the labor reform that the PP carried out with Fátima Báñez at the head of the Ministry of Labor, to the point of asking the Government of Pedro Sánchez not Repeal it. However, the PSOE has always maintained that one of its priorities is to reverse, at least, " the most damaging aspects of these regulations ." And that is precisely what the unions have requested today in the meeting they have held with the acting president.

"The Secretary General of UGT has insisted on aspects such as the repeal of the labor reform," said sources of the union led by Pepe Álvarez, in addition to "the repeal of the 2013 pension reform; the strengthening of social protection, the struggle against poverty and the distribution of wealth, as well as the increase in SMI and the revaluation of pensions. "

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