Agreement on unemployment benefits

He Minister council approved yesterday the decree law that reforms the unemployment benefit, one of the issues that has most confronted vice presidents Nadia Calviño and Yolanda Díaz in the last year. The formula finally adopted was achieved after intense negotiations in which both the Minister of Economy and the Minister of Labor had to give in on their maximum demands, but it includes essential points of both proposals. The amount of this subsidy (received by people who have exhausted the contributory benefit or are not entitled to it) increases its amount from the current 480 euros to 570 euros, but only during the first six months, since then the figure is gradually reduced to 480 euros after 12 months. Thus, the amount is increased, but without reaching the 660 that Díaz proposed, and at the same time the charge is gradually reduced, as Calviño proposed.

Without wanting to clarify which of the two economic souls of the Government has been imposed more, the essential thing is that the will to agree has predominated and that the last clash between two different visions of economic policy. Almost on the horn, because Brussels demanded to close the unemployment benefit reform before the end of the year to disburse a new payment of 10,000 million euros from European funds. Although it has taken longer than it should, the Government has once again emerged victorious from internal friction. However, for the decree to go ahead it has to be validated in Congress, for which He will need votes that the Executive is not guaranteed.

Regarding the agreement, the reform represents progress that is worth highlighting. Among them, the expansion of coverage to some 400,000 new potential beneficiaries (compared to almost 900,000 currently), since Temporary workers and those under 45 years of age without family responsibilities are added. Also important is the possibility of making your payment compatible with a job, which will facilitate return to work. Likewise, eliminating the month-long wait to collect aid will provide well-being in situations of economic emergency. Quarterly control mechanisms and the obligation to submit the income tax return are the new developments, proposed by Economía, to fight fraud in this ambit. Maximizing the efficiency and proper functioning of this aid will help avoid stigmatization or generalizations that do not correspond to reality. Unemployment benefits are a cushion for people to whom other doors have been closed. This is a necessary figure, but it must be temporary in nature since The objective is reintroduction to the labor market as soon as possible. An objective that the subsidy alone does not achieve, but rather It must be accompanied by active employment policies.

The clashes between Calviño and Díaz (they have also disagreed on the minimum wage and the bank tax, among others) show the differences in the economic model of the two forces in the Government coalition, discrepancies that will probably not cease with the departure of the first to European Investment Bank. Negotiating spirit will be needed, inside and outside the Executive, to seek common ground in a legislature where the need for agreements will be the tone. Equally necessary is stability for a Government that must carry out the Budgets.

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