Spain to increase minimum wage by 8%

The impact of the Spanish Socialist Party (PSOE) on Parliament was evident last week following the announcement by the new PP government that it is to increase the country’s minimum wage by 8% – the largest rise in 30 years…

Having ceded government to the PP earlier this year on the proviso that it would have greater influence in Parliament, the PSOE have struck their first victory as the main opposition, reaching a deal that will deliver more financial protection for the country’s poorer workers.

The 6% increase would see the minimum monthly salary rise from €655.20 to €707.60, and follows a pre-election manifesto pledge by the PSOE who said they would introduce such an increase if they got into power.

The party was also able to convince the government to place a deficit target of 0.6% of GDP on regional governments – a move that will free up many millions of euros for social welfare.

Not only do these policies demonstrate how Spain’s PP will have to acquiesce and collaborate on certain issues, but also serve as a reminder to disgruntled PSOE voters that their party can still have an influence on matters close to their heart.

When the PSOE stepped aside at the last congressional vote, thereby handing power to their largest rivals, divisions ran through the party. Now, however, the PSOE is eager to demonstrate that it does have clout at a decision-making level.

“We are ready to make the most of our parliamentary strength, either through deals with the government or through an alternative majority among the opposition groups,” said PSOE spokesperson for employment issues, Rafael Simancas.

Within the party there is a large sector of people opposed to the PP and Prime Minister Mariano Rajoy, which makes the PSOE keenly aware that it has to put its money where its mouth is and project its opposition stance wherever possible. The party is also being watched by Podemos, which is a leftist party that has some seats, and hence influence, in Parliament.