In late July 2007, the General Secretary of the General Workers’ Confederation (Unión General de Trabajadores, UGT [1]), Cándido Méndez, and the General Secretary of the Trade Union Confederation of Workers’ Commissions (Confederación Sindical de Comisiones Obreras, CC.OO [2]), José María Fidalgo, held a meeting with the Minister of the Economy and Second Vice-president of the government, Pedro Solbes, to express their opinions on the 2008 National Budget. The trade union leaders considered that the aims of job creation and economic growth, as laid down in the budget, were realistic. Nevertheless, they insisted that the model for economic growth must be changed in order to increase Spain’s productivity and competitiveness.[1] http://www.ugt.es/index1.html[2] http://www.ccoo.es/csccoo/
The Trade Union Confederation of Workers’ Commissions and the General Workers’ Confederation have confirmed their support for the aims of job creation and economic growth, as set out under the proposed national budget for 2008. However, they insist that the Spanish model for economic growth must be changed in order to improve productivity and competitiveness.
In late July 2007, the General Secretary of the General Workers’ Confederation (Unión General de Trabajadores, UGT), Cándido Méndez, and the General Secretary of the Trade Union Confederation of Workers’ Commissions (Confederación Sindical de Comisiones Obreras, CC.OO), José María Fidalgo, held a meeting with the Minister of the Economy and Second Vice-president of the government, Pedro Solbes, to express their opinions on the 2008 National Budget. The trade union leaders considered that the aims of job creation and economic growth, as laid down in the budget, were realistic. Nevertheless, they insisted that the model for economic growth must be changed in order to increase Spain’s productivity and competitiveness.
Low pay levels
The trade unions believe that the Spanish economy depends too much on unproductive sectors in which pay levels are low. According to Mr Fidalgo, if this situation continues, the overall average income level may fall. Meanwhile, Mr Méndez expressed his concerns about a spiralling of low pay levels in the context of rising oil prices, inflation and interest rates.
Investing in research and development
In order to modify this pattern of growth and to solve the two main problems facing the Spanish economy – namely, its low productivity and its trade deficit – the trade union leaders have called for greater expenditure on research and development (R&D) and on education. Mr Fidalgo argued that education receives little support from the national government, and called for greater cooperation between the national and regional governments in this respect.
Mr Méndez signalled that companies’ investment in R&D remains weak, because the benefits of such investment are only reaped in the long term and companies prefer the rapid returns of ‘bricks and mortar’, that is, more tangible and concrete projects. Mr Méndez called for a greater commitment to technological development in particular.
The leaders of CC.OO and UGT also stated that sufficient taxation would be critical for enabling the government to meet the ongoing need to improve infrastructure, technology and education, in the context of reduced EU funding. As a result, they do not consider tax reform to be a priority.
Response to budget plans
The Secretary of State for Inland Revenue declared that the 2008 budget had met with a relatively positive response. The government agrees with the social partners on the need to reinforce expenditure on R&D and to improve the model for economic growth.
Employer representatives also gave a positive response to the budget plans during recent meetings with government representatives.
Emma Cerviño, CIREM Foundation
Il-Eurofound jirrakkomanda li din il-pubblikazzjoni tiġi kkwotata kif ġej.
Eurofound (2007), Trade unions support national budget for 2008, article.
