The president of the Spanish Confederation of Business Organizations (CEOE), Antonio Garamendi, stated this Monday, when asked about a possible early election, that the political situation Spain is going through is "shameful" and that citizens "do not deserve what they are experiencing".
In the corridors of Congress, several media outlets questioned him about whether he considers it necessary to advance the general elections, a demand that some investiture partners, such as PNV and Junts, have already put on the table, given the Government's difficulties in moving forward with its legislative agenda and the judicial cases affecting the Executive.
The highest representative of the employers' association replied that "The situation is shameful and we Spaniards do not deserve what is happening", statements he made just before participating in a conference held in the Lower House.
Next, the business leader expressly called for respect and support for the work of judges, emphasizing that it is "fundamental" not to question the independence of the Judiciary based on whether the rulings are liked or not. He also conveyed his support for the State Security Forces and Corps and for the "free press", underlining the importance of the media in guaranteeing democratic transparency.
Bad international image and lack of State agreements
Garamendi stressed that the current political climate projects a bad image of Spain abroad and erodes the confidence of investors and businessmen. For this reason, he reiterated that companies need "legal certainty, regulatory stability" and "confidence" to be able to plan their decisions.
In the same vein, he lamented the absence of dialogue between the different parliamentary forces and the lack of major State pacts on issues he considers of special relevance, such as the recent regularization of immigrants approved by the Government.
The president of the CEOE insisted that it is up to the parties to find a way out of the current situation, although he avoided commenting on possible parliamentary combinations. "That is what political parties are for. What I say is that each one must be responsible for their approaches," he recalled.
The head of the employers' association has reiterated that the political scenario is not acceptable for either citizens or the business sector, and has asked public leaders to act with foresight. "I believe we deserve, on the political level, that political leaders be responsible and do what they have to do," he stressed.
Without new Budgets and with more absenteeism
During his speech at an event organized by the State Confederation of Services, Garamendi criticized that Spain still lacks new General State Budgets (PGE) since 2023. At the same time, he warned that labor absenteeism has soared by 55% since the pandemic, with an economic impact he estimates at 33 billion euros per year.
The president of the CEOE defended that new public accounts are essential to reinforce business confidence and provide certainty. Furthermore, he pointed out that if a similar situation occurred in a private company, it would have immediate consequences: "We would be out on the street."
He also focused on the increase in public debt, which, according to his estimates, has risen by more than 70 billion euros year-on-year. In parallel, he questioned the tax burden borne by companies and workers, and denounced that the lack of deflation of personal income tax (IRPF) means, at least, 19 billion euros that do not reach the pockets of employees.
Salary gap between business cost and net pay
On the other hand, the employers' representative drew attention to the difference between gross salary and net pay received by employees, especially in the case of SMEs. As an example, he pointed out that "When a worker takes home 1,800 euros, the cost to the company is around 3,200 euros."
In his speech, Garamendi also reproached the second vice president, Yolanda Díaz, for trying to shift responsibility to her government partner (PSOE) when certain legislative measures do not move forward, reminding her that the Executive "is one, not two or three."
In this regard, he criticized Díaz for appearing before the media to distance herself from decisions of the Ministry of Finance. "It's easy to go to the press, it's easy to grab a microphone and say no, I agree with that. But really, what do I care if it has never been applied," he criticized, with special reference to the indexing of the SMI in public contracts.
Legal uncertainty due to changes in labor regulations
Deepening his criticism of the Ministry of Labor, the president of the CEOE has called for greater legal certainty in the face of continuous modifications in labor legislation. He has denounced that the department headed by Yolanda Díaz has already altered 60 norms derived from the labor reform agreement approved in 2021.
"If the rules change every day, it is really difficult for us to understand signing or re-signing something," he pointed out, while acknowledging that the labor reform was "an example" of public-private cooperation. For this reason, he has demanded that the main labor rules be processed and approved in Parliament, and not through executive regulations that, in his opinion, bypass ordinary legislative control.