The president of CEOE, Antonio Garamendi, again criticized the sharp rise in the maximum base for Social Security contributions this Tuesday. This policy, included in the General Government Budgets for 2023, is seen as a move that creates a complicated scenario for companies.
Speaking at the economic forum “Companies facing the new challenges of 2023” organized by El Correo, Garamendi reiterated his view that the central government acted without consulting business groups or unions. He argued that the decision was made in a consultative vacuum and urged authorities to involve both employers and workers in such talks.
In response to the criticism from CEOE last Monday, José Luis Escrivá, Minister for Inclusion, Social Security and Immigration, defended an 8.6% increase in the maximum Social Security contribution base included in the Budget Project. He described the change as a yearly measure that helps bring predictability to the system.
The CEOE chief again stated on Tuesday that the rise in the maximum contribution base occurred without prior consultation with business and union organizations, calling the move disproportionate and stressing that it could place companies in difficult positions as it becomes a recurring annual policy. He warned that this is a serious shift that should not be accepted without dialogue.
The leader of the Spanish confederation acknowledged the government’s authority to approve such a measure but urged the state to avoid implying that it stems from social dialogue. He emphasized that he cannot agree with that framing and called for clear, direct talk rather than what he described as a unilateral approach.
Garamendi added that the government did not notify them beforehand, and criticized Escrivá’s later remark that “one point can be added each year.” He noted that the current decision is 8.5% this year with future steps tied to inflation, suggesting the policy is unpredictable and potentially destabilizing for firms.
He also warned against taxing companies as if the revenue were an endless bag, arguing that such thinking would undermine long term investment. Garamendi described the approach as a real mistake that could erode competitiveness and investment returns.
“ideological” taxes
Referring to the announced tax on large fortunes, he labeled it an ideological measure and stated that conversations should avoid framing people as rich or poor. He also commented on the Andalusian government’s decision to abolish the wealth tax and warned about possible tax flight by Basque taxpayers to neighboring regions.
Garamendi, who speaks from a Basque perspective on fiscal powers, argued that each region should exercise its authority carefully and that the wealth tax is not compatible with European norms. He called the idea of taxing vast fortunes or energy companies a source of legal uncertainty and cautioned against blaming businesses for broader fiscal problems. He urged focus on fair taxation rather than punitive schemes that could hurt the economy.
“They already pay enough”
On the debate about asking more of those with greater resources, Garamendi said that they already contribute significantly. With informal economy estimates reaching 24% in Spain, he advocated stronger anti evasion measures and emphasized closing gaps in enforcement rather than raising rates on existing taxpayers.
He reiterated concerns about the General Government Budgets project, noting that the CEOE views the plans as not aligning with regular accounting practices. He questioned the 2.1% growth forecast tied to these budgets, noting employers estimate only around 1.5% at best. In his view, pandemic effects on social protection funding should not be overstated, and he criticized statements suggesting a 15,000 million euro Covid impact claim as inaccurate.
Garamendi argued that many companies faced operational shutdowns due to administrative orders and that some temporary employment regulation files (ERTE) implemented during peak periods were not fully resolved. He pressed for clarity and fairness in how economic support measures are applied.
“radicalize society”
The CEOE head insisted that the association’s proposals come from a position of political independence. He voiced concern that certain policy directions could fracture social cohesion. He argued against framing debates around wealth as a class struggle and cautioned against populist rhetoric about a people’s government.
In remarks prior to his forum appearance, the leader stressed that any final revenue agreement should include the main opposition party. He criticized recent government actions that he viewed as obstacles to reaching a broad consensus. He warned that if Social Security funding is raised and pensions are decided in one place, it would undermine the sense of national bargaining known as a treaty framework. He noted that agreements with unions have endured despite current tensions and reminded audiences that a balance must be struck when policies affect employment, investment, and growth, especially as maximum bases for Social Security contributions come into play.
Source attribution: This summary reflects statements reported about the CEOE leadership and related fiscal proposals as covered in the referenced economic forum coverage. Citations: (Source: El Correo).