The introduction of the euro single currency in January 1999 prompted differing reactions from the social partners in Spain, though they have all adopted a positive view of it from a macroeconomic perspective.
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The introduction of the euro single currency in January 1999 prompted differing reactions from the social partners in Spain, though they have all adopted a positive view of it from a macroeconomic perspective.
In Spain, the government, the trade unions and the employers' organisation have all adopted a positive view of the new European single currency, the euro, and stress that the monetary strength and stability that it involves will facilitate improvements in the economy. However, the various partners place emphasis on different aspects and different effects on the social system and on industrial relations.
The Minister of the Economy in the People's Party (Partido Popular) government has stated that Spain's success in joining the front-running group of the euro will mean that over the next four or five years the country will reach the average European income level. However, commentators have stated that, judging by what has happened over the last few years, even if this is the case there is no guarantee that the distribution of internal incomes will become more equal.
The unions have placed emphasis on aspects that were not considered - or were considered only indirectly - in the Treaty of Maastricht, and urge the government to make an effort to accept the validity of their points. The UGT confederation claims that in Spain employment and social protection are among the worst in the EU because the government does not wish to take advantage of current economic growth to make a greater commitment on these questions. For its part, CC.OO wishes to avoid a situation in which the impossibility of adjusting competitiveness through monetary policy will lead to adjustments paid for by workers through employment conditions and wages. It therefore stresses the importance of collective bargaining. It also believes that the new economic scenario opens up possibilities for a far more progressive tax policy.
Finally, the CEOE employers' organisation sees the advent of the single currency as a new opportunity for companies, which will lead to greater stability and competitiveness, particularly for those that are able to seek new markets. The advantages identified by the employers' organisation include simplification of accounting procedures, better financial conditions, convergence of internal corporate systems, and better training.
Eurofound recommends citing this publication in the following way.
Eurofound (1999), Social partners take positions on the euro, article.
