The Prime Minister's office does not want to take on the unions as the head into an election year, so they are ready to raise the limit on severance pay to 2,000 euros per year. Miguel Ferre, Secretary of State for Finance, is talking openly about negotiating a deal.
Separate from whatever intentions the government has, it's prudent to reconsider this gratuitous tax burden that hurts the people who are most affected by the crisis. In the talks, leaders should focus on the best solution instead of election politics or cronyism. Plus, severance pay is taxed throughout Europe, and the government is trying to make layoffs cheaper for companies, albeit indirectly, and incentivize people to look for jobs. The talks should not cloud this strategy.
