European Central

The perspective for this year are that it continues the contraction of the banking financing, reason why will become difficult still more the recovery of the internal demand. It is so for the Spanish labor market, the panorama observed by the BBVA is than worrisome more. For the end of the 2009 Spanish economy it could have 4.1 million of unemployed, whereas the number would rise to 4.5 million in 2010. If the fiscal policy (which is limited by the great deficit of the Spanish public accounts) cannot make too much to revert the contraction of the Spanish labor market, Will be able to help the monetary policy of the European Central bank? From the European Central bank a great conviction in continuing with the cycle of cut of rates does not exist to facilitate the economic recovery of the region. So that it happened, the scene of eurozona will have to be clearly defined with an economy in deep contraction and without inflationary pressures.

Anyway, the weakness that is observed in the transmission channels of the monetary policy generates few expectations positive about effectiveness of the same to prop up the economic recovery and with her to revert the situation in the labor market of Spain. The situation of the Spanish labor market has brought about reform orders towards the same. Between the proposals, the one of the BBVA reform suggests it includes the creation of ” indefinite contract nico” for the new jobs, whose costs of dismissal increase according to makes the antiquity of the workers, as well as ” surely of despido” like that exists at the moment in Austria, that is accumulated during the labor life and reverts in the worker when it begins to acquire the pension. The Organization for the Cooperation and Economic Development (the OECD), on the other hand, recommends Spain to make flexible the labor market and to lower the price of the dismissal. It the OECD to improve the situation of the Spanish labor market is necessary that the government allows the companies to more easily countermand the application in the wage agreements and to favor the suppression of the clauses of readjustment of the inflation. The suggestions of relaxation of the Spanish labor market are as a solution to jeopardizes situation of the Spanish workers, but this one is not the unique problem of the economy of Spain, reason why at the most it will alleviate the deterioration of the labor market. The 2009 without doubts are going to be a difficult year for the Spanish workers. The government of Rodriguez Zapatero will have to strive to the maximum to limit the effect of the crisis on the workers. He will resort to a reform in the labor market for it?