El Ministerio de Trabajo is racing against the clock to push through one of its most famous and consequential measures for this legislative period. The employment minister, Yolanda Díaz, has made clear she will not yield to further pressure from other administrations and intends to bring the unemployment subsidy reform to Congress. The government must reach agreement swiftly because 10,000 million euros from the Next Generation EU funds are at stake. [Citation: Gobierno de España, Ministerio de Trabajo]
When it seemed Díaz had a clear path to advancing the unemployment subsidy reform for people over a certain age without benefits, Podemos stepped in to block the measure. That moment triggered a political dispute within the government and with the Ministry of Economy, which aims to chart a different course for Díaz’s plans. [Citation: Gobierno de España, Partido Podemos]
How is the current subsidy situation?
The reform of the unemployment subsidy for those over 52, the flagship element of the government’s recovery plan, remains uncertain. After failing to secure approval in the Senate last December, the government is exploring new avenues to advance the proposal. [Citation: Gobierno de España, Senado]
The reasons behind the rejection are varied. Podemos, a minority partner in the coalition, opposed the reform, arguing it would cut benefits for this group. ERC Catalan regional party likewise distanced itself by not backing extra protections for employment in sectors hit hardest by the crisis. [Citation: Podemos, ERC]
What can the Government do to push the measure through?
The government now has two main options: retry convalidation in Congress or resort to a decree law. The first option appears difficult given the lack of rapprochement with groups that opposed the reform. The second option, a decree law, would allow the government to approve the reform without passing through Congress but would entail greater political cost. [Citation: Gobierno de España]
The delay in approval directly impacts thousands of unemployed people over 52 who find themselves in a particularly vulnerable situation. The reform aimed to broaden subsidy coverage and improve access, such as lowering the eligible age to 45, but those measures now hang in the balance. [Citation: Ministerio de Trabajo, IPREM]
The future of the reform
The future of the subsidy reform for those over 52 remains uncertain. The government stands at a crossroads and must decide in the coming weeks. Time is slipping away, and the condition of older unemployed individuals deteriorates with each passing day. Díaz seeks to apply her conditions to this measure, while the Economy Ministry wants to align it with Brussels demands. [Citation: Gobierno de España, Comisión Europea]
Díaz’s plan would raise the IPREM based subsidy from 80 percent to 95 percent for the first six months, then reduce to 90 percent for the next six months, and eventually to 80 percent if the subsidy duration extends beyond a year. [Citation: IPREM, Gobierno de España]
What happens next
In this scenario, the government is expected to intensify negotiations with all stakeholders to reach an agreement that moves the reform forward. The aim is to prevent further harm to a vulnerable group amid the current economic climate. [Citation: Gobierno de España]