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The President of the Government insists that the main objective of the labour reform is to provide alternatives to job destruction

08 February 2012

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During the Government Control Session in the Lower House of Parliament, Mariano Rajoy stated that the labour reform being prepared by the Government is the one Spain "needs right now".

In response to a question from the Member of the Lower House for the Plural Left Group (IU, ICV-EUiA, CHA), José Luis Centella, the President of the Government stressed that the objectives of the labour reform being prepared by the Government are job stability, internal flexibility and, above all, to provide adjustment mechanisms that can be used as an alternative to job destruction in times of difficulty.

Mariano Rajoy reiterated that every adjustment in Spain in the past has resulted in job losses, particularly in temporary employment and youth employment. "There has to be a reform of the labour market because more than half of our young people are unable to work. We will pass a law because that is what Spain needs right now", he said.

Export companies

In response to a question from the Member of the Lower House for CiU, Josep Antoni Duran i Lleida, on the VAT rebate for export companies, Mariano Rajoy insisted that, according to the data held by the Tax Authorities, the monthly rebate system to export companies is a special regime that enables exporters to receive their VAT rebate at the end of each month rather than be forced to wait until the end of the calendar year.

According to the data held by the State Tax Authorities, the average time being taken to issue these VAT rebates currently stands at 44 days. In the case of Catalonia, this average period stands at only 33 days - eleven less than the national average. The President of the Government therefore believes that the periods being discussed are "reasonable", although he added that it is always possible to do things better.

Finally, in response to a question from the Member of the Lower House for the Socialist Group, Alfredo Pérez Rubalcaba, the President of the Government recalled that "we were told by the previous Government that we were going to meet the 6% public deficit target and then discovered it stood at 8%; that is the most serious of all the problems regarding confidence we are facing".