German chancellor Angela Merkel wants Spanish Prime Minister Mariano Rajoy to implement stiff labor reforms, similar to those that Germany successfully conducted.
This is not the time to disappoint Merkel. Especially Spanish government voted in these labor reforms by an absolute majority and hopes to move past the mere patches that were applied during Zapatero's socialist party days.
Our labor market needs structural reform that eliminates "duality" and harmful incentives, both of which have been preserved to the detriment of temporary employees.
These goals can only be achieved through integrated measures and, after that point, collective bargaining, which is one of the more dysfunctional elements of current labor reforms. Salary agreements and "miniflexibilizaciones"(agreements about the flexibility and mobility of an employee's hours and work location) are not real reforms, but ineffectual touchups. Merkel understands the difference.
