Spain's Shorter Workweek: Coalition in Crisis

A rift has emerged in Spain's left-wing coalition over a proposal to shorten the workweek while maintaining pay. Labour Minister Yolanda Diaz criticized Economy Minister Carlos Cuerpo for allegedly siding with employers. The government asserts its commitment to the plan, aiming to implement it by 2025.

The Spanish left-wing coalition is experiencing a significant rift over a proposed plan to shorten the working week without reducing pay. Labour Minister Yolanda Diaz has publicly criticized Economy Minister Carlos Cuerpo, accusing him of siding with employers. Diaz, who leads the Sumar party, expressed her concerns on state radio RNE, highlighting "manifest disagreements" with Prime Minister Pedro Sanchez's Socialist Party regarding the plan.

Diaz emphasized the importance of respecting the committee of experts that developed the proposal, urging colleagues to support it. In response, a source from the Spanish economy ministry reaffirmed the government's commitment to the initiative, describing its implementation as a priority despite the internal discord.

The initiative aims to reduce working hours to 37.5 per week from the current 40, with no pay reduction, by the end of 2025. However, critics, including Spain's central bank and main employer association CEOE, caution against potential inflation and employment impacts, advocating for negotiated agreements instead of legislative mandates. The outcome of this contentious debate could significantly influence Spain's economic policy trajectory.

(With inputs from agencies.)