Why The European Commission Is Wrong: The Case Of Spain – Social Europe Journal

Why The European Commission Is Wrong: The Case Of Spain – Social Europe Journal.

The Vice President of the European Commission, Olli Rehn, in charge of Economic and Monetary Affairs is becoming the most unpopular EU Commissioner in Spain. He emphasizes over and over again that labor market rigidities are causing the high unemployment in Spain. “Labor rigidities” is a polite way of accusing the Spanish trade unions for the high rate of unemployment that exists in Spain. Indeed, labor rigidities are supposed to mean that, because the unions have been able to get job security for some workers, employers have it too difficult to fire them. This supposed rigidity has not stopped them, however, from firing nearly 4 million workers out of the whole labor force of 16 million. According to Olli Rehn, employers should have it even easier to get rid of workers. The more workers they can fire, the more workers they will hire.

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