The Prime Minister, Pedro Sánchez, today chairs a Council of Ministers with Pablo Iglesias and other members in which he plans to approve a series of measures in the opposite direction to his electoral economic program, which is temporarily parked. "The new scenario changes everything," government sources told this newspaper , highlighting the priority of taking economic measures by consensus with businessmen in social dialogue to avoid a long crisis.

The magnitude of the effect of the coronavirus forces Sánchez and Iglesias to offer already renewed labor flexibility so that companies can make temporary employment adjustments - trying to avoid abuses - and moratoriums on the payment of taxes and Social Security contributions in the most affected sectors , according to some of the measures already outlined by Sánchez himself.

The Minister of Inclusion, Social Security and Migration, José Luis Escrivá, was also finalizing yesterday the creation of an extraordinary benefit to cover part of the salary for working parents who need to reduce hours to stay with their children, thus exempting companies from burdens. He said that the solution will be given "through a new Social Security benefit, which means that those parents who have to stay with their children and the company does not offer them a face-to-face work solution can apply for income compensation for the time that they are going to have to stay at home ».

Escrivá also confirmed a moratorium on the payment of contributions with effects of one year and that workers in a situation of isolation due to the virus will be considered by Social Security as being in a workplace accident situation, which is why the Administration is in charge of the first day and not the company or the worker.

In contrast, it is not expected that one of the tightening measures will go to the Council of Ministers so that companies and higher incomes contribute more, such as the decree to raise the maximum contribution bases in line with the increase in the Interprofessional Minimum Wage. . There is also no progress in repealing the labor reform. These are two measures that CEOE leaders consider counterproductive at this time of economic crisis due to the coronavirus.

Miguel Garrido, vice president of CEOE and president of Madrid employers CEIM, openly asked in a statement this Wednesday "that proposals for tax increases or a labor counter-reform should be left behind and bet on measures that allow companies flexibility , to eliminate tax burdens and social contributions and to reduce or eliminate taxes with the aim of maintaining employment ».

Sánchez himself, who defended in an electoral campaign that companies pay few taxes and benefit from a labor reform with "harmful aspects" for the worker, wants to stage the new climate of social dialogue and approach to employers today at a meeting in Moncloa which will be accompanied by a good part of the Government, including members of Podemos. "It has always been argued that issues such as labor reform and pensions must go through social dialogue," point out government sources, although they admit that the impact of the coronavirus crisis makes consensus and a sense of state more necessary. Sánchez will complete his plan with liquidity measures and soft loans and ICO guarantees that are considered a priori as insufficient by businessmen and unions called today in Moncloa.

Meanwhile, the set of study services consulted by the Fundación de Cajas de Ahorros (Funcas) revises its growth forecast for this year downwards and places it at 1.5%, compared to 1.6% forecast by the Government. Banco Santander fears only 1.3% for lack of knowing the size of the crisis.

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  • Social Security
  • CEOE
  • We can
  • Pedro Sánchez
  • Pablo Iglesias
  • José Luis Escrivá

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