Head of Government Pedro Sánchez announced that the government plans to strengthen the inclusion of unemployed people in the labor market during a Madrid event that closed the Multinational Forum. Gonzalo García Andrés, the Minister of State for the Economy, indicated that the unemployed assistance reform aims to tighten monitoring of benefit recipients who decline job offers from public employment services. The reform seeks to ensure that benefits align with full-time work. Sánchez also highlighted that foreign investment in Spain has risen over the past decade, noting that Spain closed 2022 as a leading destination for investment world-wide.
OECD data show that Spain is among the nations with relatively low demand among the unemployed when seeking work, along with Chile, Poland, Greece, and Turkey. While beneficiaries are asked to commit to job searching, the OECD argues that monitoring is insufficient. The government’s reform proposal would intensify oversight of those who turn down offered positions. García Andrés explained that the plan would channel the unemployment benefits system toward reintegrating workers into the job market, taking into account gaps in profiles identified by SEPE in many sectors, including highly skilled areas and those requiring fewer qualifications.
He recalled that years ago, when unemployment was higher, the subsidy system included social protection elements now present in the labor market through a minimum living income. The Secretary of State stated that it is time to advance this reform at the benefit level to mobilize all subsidy recipients.
Stock market rally
In his remarks at the Multinationals Forum, the Head of Government argued that the Ibex rebound this November signals the stability of Spain’s investments. He asserted that Spain continues to inspire trust and certainty and pledged ongoing economic policy continuity in the next legislature. He promised business leaders social peace and certainty for the coming four years.
The president argued that Spain is clearly a favorable place to invest, create jobs, and generate wealth. While recognizing that it is legitimate for companies to pursue profits, he stressed that firms should also be mindful of the social impact of their activities on the regions and countries in which they operate. Acknowledging current uncertainties and significant transformations, he underscored the importance of public-private collaboration.
Additionally, the approval by the European Commission of the Recovery Plan Annex will mobilize up to 163 billion euros by 2026. Sánchez noted that Spain must continue to solidify its leadership in the European arena and be an active voice in global discussions on issues relevant to multinational leadership. He emphasized that Spain continues to inspire confidence and remains on track, despite doom-laden forecasts.
According to the European Commission, the Spanish economy is projected to grow 2.4% this year and 1.7% next year. The president stated that, despite uncertainty, Spain shows macroeconomic resilience, a perception shared by financial markets. He highlighted positive prospects for foreign investment, stressing improvements in worker qualifications, incentives for the long-term unemployed, inflation control, and a sustainable fiscal policy aligned with EU commitments identified as priorities.
Among Sánchez’s key points is the completion of a reindustrialization strategy anchored in green and digital priorities. He expressed strong enthusiasm for this approach, describing it as uniting the country socially and economically.
Multinational companies want stability
Paloma Cabrera, president of Multinational Companies with Spain, noted at the congress closing that multinational firms play a crucial role in building a robust business framework. Figures from Europa Press show there are more than 14,700 foreign-owned subsidiaries in Spain, representing about 27.5% of business activity. These companies directly employ around two million people and indirectly another 2.6 million.
“We compete in a global market, and in that context it is essential to have a political, economic, and social environment that facilitates business and commercial activity in Spain”, Cabrera stated. She stressed that political stability and legal certainty are indispensable to maintain investor confidence, and that Spain should aim to attract even more global investment in the coming years. There was emphasis on laying a solid foundation for continued growth.
To support this goal, Cabrera highlighted the development of the Atrae Plan, a set of proposals focused on improving the social, territorial, physical, regulatory, and administrative environment to attract and sustain investments in Spain. This plan is intended to reinforce Spain’s position in the European and global investment landscape and to foster long-term prosperity for the country and its people. [Citation: Europa Press]