In a surprising turn of political events, Podemos rejected this offer. Decree reforming unemployment benefitsRecommended by the government. This event brings with it many questions and consequences for both workers and the country’s economy.
Unemployment benefit reform: What does Podemos’ decision mean?
Decree regulating the reform unemployment benefit It aimed to change the subsidy system in Spain. However, opposition from the Government’s key partner, Podemos, paralyzed this initiative. The main reason for their opposition is Impact on people over 52Those who will switch to a subsidy with less favorable conditions at the end of their benefits.
Unemployment benefit contribution debate
In 2019, the Pedro Sánchez Government reintroduced this subsidy, allowing beneficiaries to contribute 125% above the minimum base. This meant; although they receive a subsidy of around 480 euros, price to Social Security It was calculated as if they earned 125 percent of the minimum base. The current Government has proposed reducing this overcharge to 100%; Minimum Interprofessional Wage (SMI) It made the previous measure unnecessary and discouraged job search.
Podemos’ refusal to support the unemployment benefit reform decree carries many consequences. On the one hand, implementation of planned improvements halted as in reform increase in subsidy amount and the eligibility of the subsidy for employment over a period of time. Additionally, this decision directly affects the Spanish Government’s commitments with the European Commission, putting at risk the disbursement of vital European funds for the country.
Unemployment subsidies: What are the possible avenues for the government?
Faced with this scenario, the Government faces a dilemma. He could seek Podemos’ support by changing some aspects of the reform, but this would mean a challenge for both the Ministry of Economy and the Ministry of Labor. Any changes to the reform also need to be submitted to and approved by the European Commission, adding another layer of complexity to the process.
The challenges of unemployment benefit reform and the position of unions
The course of this reform was complex from its inception. The tension between the Ministries of Labor and Economy, which left its mark on the process, revealed the differences in their approaches. Added to this is opposition from unions, who criticized the lack of consensus in the design of the reform. They especially oppose Contribution change for people over 52 years of age.
In summary, The decree reforming unemployment benefits is at a critical point. Podemos’ decision does not only affect Turkey. Beneficiaries of subsidy for people over 52 years of agebut it also poses significant challenges to the Government’s relationship with the European Commission and the management of European funds. Resolving this situation will require establishing a delicate balance between political, economic and social interests.