The

Foundation for Applied Economics Studies (Fedea) is

committed to a "more selective" extension of the Records of Temporary Employment Regulation (ERTE), eliminating the

ban on dismissals to companies that need it

.

It also advocates training those affected by these mechanisms, modernizing public employment services and designing a fiscal consolidation strategy to be applied from 2022, in turn postponing the tax increase.

These are the conclusions presented this Monday of the

final report of the Covid-19 Mixed Working Group

, promoted last May by Fedea and in which

more than 120 experts formed by professionals and academics

from numerous companies, universities, participated. and other organizations with proposals for reconstruction after the coronavirus crisis.

The

executive director of Fedea, Ángel de la Fuente

, explained that in the short term the urgent thing is to control the outbreaks and

adapt the aid

that was launched at the beginning of the crisis to promote reactivation and avoid the destruction of the business fabric, facilitating the

allocation of resources to companies with better long-term prospects.

De la Fuente has indicated that it is necessary to make "a virtue of necessity" and transform the economy to orient it to activities with better added value and more future, while in the long term he advocates promoting growth and competitiveness with an investment policy towards the most competitive sectors and structural reforms to improve the labor market or the sustainability of pensions.

Fiscal plan since 2022

The director has also underlined the

need for a budget agreement with the "general interest" in mind

for several years in order to achieve "inclusive and sustainable" growth and has advocated for starting to design a fiscal adjustment plan to redirect public accounts. which

would begin to apply from 2022,

when there is an "explicit commitment" to reduce the structural deficit by half a point a year, provided there is no recessionary period.

To achieve this, he points out the containment of spending and tax measures as key.

In this regard, De la Fuente considers that it is not the best time to raise taxes, although he believes that they could implement temporary surcharges in personal income tax when the recovery is settled and until the

"necessary" "deep" review of the system

is undertaken.

tax.

The new tax strategy should go, in the expert's opinion, to

expand the tax bases reducing tax benefits

eliminating those that are not efficient, redesigning the reduced VAT rates, eliminating the module system and the simplified VAT regime to achieve "bases broader that allow us to collect more, without having higher rates. "

Similarly, the consultants consider "essential" the proper use of the EU aid mechanisms to accelerate the exit from the crisis.

Remove the ban on layoffs

In labor matters

, Marcel Jansen

,

professor at the Autonomous University of Madrid and PhD in Economics from the European University Institute of Florence

, has opted to be "more selective" in the face of the extension of the ERTE that is being negotiated and adapted the scheme to that of other countries such as Germany to be an instrument of human resources management and use the time not worked for the requalification and training of workers.

Also, he has indicated that "many companies" that have benefited from these mechanisms since March "perhaps"

need to undertake a staff adjustment and cannot due to an "excessively rigid" framework.

In the professor's opinion, the time has come to set a penalty proportional to non-compliance in terms of dismissals, so that if an employer dismisses a worker during the six months after the end of an ERTE, he only returns the aid received by that dismissed worker, instead of all the aid received as is currently established.

The GTMC also advocates the

non-renewal of the prohibition of dismissal

since ERTE require a "significant" business contribution and "it cannot be denied that companies with well-founded economic causes can dismiss", since, in addition, "in the long term all we will do is delay the necessary adjustments in the labor market. "

Likewise, he has called for the design of measures to

promote the relocation of laid-off workers,

a figure that will increase in the autumn along with bankruptcies, for which he proposes that the SEPE begin to collect information on companies that plan to layoffs or activate ERTE to relocate the laid off.

Among other points, there has also been a call to reduce labor duality, with a greater convergence in the costs of dismissals of the different types of contracts and a reduction in the different contractual modalities, as well as a modernization of the public employment and employment services. greater public-private collaboration.

In turn, Jansen has refused to carry out "counter-reforms", but rather to improve what was done in the 2012 labor reform.

Regarding the minimum vital income, the academic has questioned the

"haste" in its implementation by introducing a "permanent" system

and the definition of incentives for work having been postponed or the obligations of the recipients to join work having been clarified, nor are your rights.

The

resident of the Spanish Chamber of Commerce, José Luis Bonet

, has asked to "adapt and extend what is necessary" both the ERTE and the ICO guarantees and has asked for unity to promote internationalization and advance in digitization and training.

Another participant, the

president of the Economic and Social Council (CES), Pedro Fernández,

has called for an "ambitious" public investment program.

In health matters

, Javier Vega de Seoane (DLV Seguros)

has encouraged us to take a leap in digital transformation

, promote public-private collaboration

and create an independent agency for evaluating results, as well as another one of "many more means" to the system public health, being the "main failure" in the management of the pandemic.

According to the criteria of The Trust Project

Know more

  • Germany

  • Personal income tax

Shock plan The self-employed ask the Government to consider extending the ERTE until April 2021 in light of the rise in outbreaks and confinements

EconomyThe tile asks to extend the ERTE to 2021 to protect employment

Labor The German Government will extend its 'ERTE' until the end of 2021

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