The Entrepreneur Law (Ley de Emprendedores in Spanish) is one measure that Rajoy promised to deliver during his oath of office, and self-employed workers have been waiting patiently for its arrival.
Costs will be high for the state, which explains the law's delay. However, the overall economy will benefit greatly. Having to pay the VAT for invoices that have been issued but not paid has caused accounting problems for self-employed workers and is one of their oldest complaints.
The new law will lower Social Security rates and help with debt refinancing. It is critical that the bill does not get hung up in parliament. It could go into effect this January.
The Entrepreneur Law, albeit largely positive, will not recharge domestic consumption. Ultimately, it is a nice gesture from the government, but will not get Spain out of its economic crisis.
