Necessity demanded it. The pressure to produce a workable budget and execute new cutbacks to basic social services has forced the Spanish government to fail to meet another promise that it made during the election campaign: The Entrepreneur Law. Rajoy said that this project would start during the first quarter, but now he has postponed it until May 20. Further, it will go into effect with less funding than planned, even though it will still reinforce worker incentives. Specifically, the Cabinet has decided, at the request of Convergencia i Unió, to widen the scope of the program and the amount of tax deductions for the record-high number of self-employed workers.
This means a thirty-percent reduction to Social Security payments that workers under thirty months that they have are now applied for workers under 30 years of age. Also, the deductions are going to be extended to fifty-percent of the payment and extended to those about 45 years of age.
The Spanish government and the Convergencia i Unió still need to finalize some fringe issues related to the agreement, such as the group of workers 45 and older that the bonus will apply to. For them, the bonus could be generalized, or limited to long-term unemployed workers.