Spanish labour market reform not enough

The chamber of deputies of the Spanish parliament on Thursday voted in favour of the government's labour market reform. Now it will be submitted to the Senate. The business newspaper Expansión criticises the reform, saying it does not meet the needs of the Spanish economy: "The labour market reform will be approved, but it will be neither good nor pretty nor indeed cheap. ... In reality it consists of a few minor steps forward that are complicated and confused and it will only become clear with time whether it can be implemented or not. ... The new labour market reform is a long way off making Spain competitive, as was planned. The Spanish labour market will continue to suffer from its lack of flexibility, perhaps even more so when restrictions are imposed on temporary contracts, which in past years served as a safety valve for companies."

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