The government approved a package of deregulation measures yesterday to improve public works, create jobs for young people and reform the gas sector. Because Congres is not in session for much longer, any bills that don't get passed between now and the end of summer are likely to be filed away for another time.
Even though tax reforms have resulted in important changes, many of them resulted from agreements with the EU. Brussels mandated lower credit card rates and more flexible business hours, and now regional and local governments are having to make these changes despite their protests. Another EU proposal targeted at improving job opportunities for young workers has been under debate for over a year. The Labor Ministry thinks it is a shining star reform, but its brightness is relative at the end of the day. The government is offering 300 euros companies for each unemployed young worker that it hires for a six month period. It's worth mentioning that this aid could work alongside the 100-euro flat tax on Social Security, but even though this will finance the system temporarily it will not solve the deeper structural problem. To nix unemployment effectively, we need to cut down on duality in the job market and that requires what is called a contrato único, a single contract type for all workers.
Gas cutbacks are a step in the right direction, but whether they trim the deficit will determine their true effectiveness. In the government's latest round of measures, the bill drafts include sweeping reforms that could help end our main economic problems: unemployment and debt.
