The worsening of the economic situation has led the Government to resume its plans to wrest an agreement from the social agents to contain the effects of inflation.

The first vice president and minister of Economic Affairs, Nadia Calviño, has proposed this Wednesday to employers and unions

an income pact until 2025

that goes through a "moderation" of salary and business income to face the inflationary escalation.

"From the Government we think that a three-year agreement, until 2025, to moderate business and salary income is the contribution that the Spanish economy needs from social dialogue," said the first vice-president after the meeting between the Government and social agents --

CEOE, Cepyme, CCOO and UGT-.

It will be the second attempt by the Government to achieve this objective since before the first, launched by

President Pedro Sánchez, both employers and unions ignored

it .

For the social agents, the Government must put on the table measures that show that the State also assumes the burden of inflation.

Calviño has assured that they will work discreetly from tomorrow to forge an agreement and has recalled that social dialogue was one of the keys to getting out of the coronavirus crisis.

In this sense

"it is essential" that business margins do not widen and that wages grow moderately

to avoid the persistence of inflation and sustain the "very positive" evolution of economic activity and employment.

Despite this scenario marked by the escalation of prices, Calviño has assured that "for the moment" there have been no second-round effects that, if they occur, could cause inflation to be more persistent even if its causes disappear initials.

Calviño has not indicated what the Government will put on the table before some interlocutors who ask for totally opposite measures.

He has advanced that the (SMI) could be part of this income pact, noting that the Government's objective is to reach 60% of the average salary before the end of the legislature.

"I hope it is one of the elements that can be integrated into the income agreement", he stressed.

It is not clear that the unions accept it as a concession

since it is a commitment adopted by the Government long before inflation broke all the planned economic schemes.

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  • Carmen Bald

  • Nadia Calvino

  • CCOO

  • UGT

  • Coronavirus

  • covid 19

  • Masks

  • Lockdown

  • ERTE

  • de-escalation

  • deconfinement

  • new normal

  • minimum salary