• The Government signs with Bildu the "complete" repeal of the labor reform and clarifies at midnight
  • Politics.Churches and Otegi defend the "signed" document and warn the PSOE that it has to repeal all the labor reform

The agreement between the PSOE, Unidas Podemos and Bildu and which has served for the abertzale formation to abstain in the vote of the fifth extension of the state of alarm, not only includes the "full" and immediate repeal of the labor reform, but also offers a preferential treatment to the municipalities and autonomous governments of the Basque Country and Navarra in their financial capacity.

What does the agreement say? That "local, regional and autonomous entities will have greater spending capacity for public policies aimed at alleviating the social effects caused by the Covid crisis.19". In addition, it specifies that for the municipalities "these expenses in social policies will be excepted from the computation of the expense rule". Does the rest of the autonomous communities have this possibility? The Government has approved different measures, such as the fund of 16,000 million euros for all the communities and it is foreseeable that it will allow municipalities to use their large surplus to alleviate the consequences of the coronavirus. But in any case, the concessions to Bildu go further and, in addition, respond to a bilateral negotiation and not to an agreement at the national level, which in itself is a favorable treatment. Is this the first time this has happened? No. Critics with the advantages of the Basque Country and Navarra point out that the Constitution itself offers them an advantageous treatment. And the opaque calculation of the Basque quota or the mixed commission of the economic agreement, in which bilateral meetings take place between the State and the Basque Country, are other examples of the same preferential treatment. Does the agreement include any other advantages? Yes. The text also includes "the indebtedness capacity of the Basque Autonomous Community and the Autonomous Community of Navarra will be established exclusively based on their respective financial situations." In the absence of greater specification by the Government and the Treasury, this would mean that instead of being subject to the levels of indebtedness of the whole of the communities, the Basque Country and Navarra would have their own thresholds. Is it a "social and economic shield for all the peoples and workers of the State" as the document says? Obviously, no. This part of the agreement has the Basque Country and Navarro as sole beneficiaries. In fact, even the repeal of the labor reform does not present this supposed "social and economic" benefit, since Brussels, the Bank of Spain, the International Monetary Fund (IMF) or research services such as BBVA Reserch have pointed out on numerous occasions that it is not The labor reform must be repealed in full as it would be detrimental to the labor market. And less in the midst of the worst economic recession in the modern history of Spain.

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  • Coronavirus
  • Covid 19
  • Labour reform

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