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Spain — Generous unemployment benefit generates unemployment

19 October 2009

In an interview with Vanity Fair, ex-Socialist Minister for the Economy and Business, Carlos Solchaga said that "the Spanish Socialist Prime Minister, Luis Rodriguez Zapatero is deluding himself on labour market issues."

According to Mr. Solchaga "unemployment benefit in Spain is too generous and parts of the population simply collect it as a right for as long as they can before they bother to find a new job."

Solchaga says further "that the Spanish government's official labour office (INEM) is a disaster area because it has only managed to find work for 10% of the officially registered unemployed."

The ex-Minister advocates that private staffing agencies should be directly involved in finding jobs for the unemployed and says that the unions, who are opposed to this concept, do not have the same interests on this subject as the people they are supposed to represent.

"The government coffers face the most difficult situation we have seen ever since Spain became a democratic country [in 1975]. We have never had such a deep recession before and tax payer's money should not be wasted on populist policies."



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