The Law 2/2015, of 30 March, on the De-indexation of the Spanish Economy is a law of the Spanish legal system in force since 2015 by which the prices in whose fixation intervenes, totally or partially, some entity of the public sector are decoupled from the evolution of the CPI. The main objective of this law is to control inflation and thus improve the competitiveness of Spanish products abroad.[1]
Economic context
editAccording to the Global Competitiveness Index of the year the law was passed, the component of competitiveness in which Spain ranked worst was the macroeconomic scenario, a concept within which inflation was included. That said, what Spain is best positioned in, not only within its own indicators, but globally, is precisely in inflation, so this variable is the one that is currently harming Spain's competitiveness the least.[2] Although the law was passed in 2015, the low inflation rate observed in Spain at the time due to the 2008–2014 Spanish financial crisis situation meant that the regulatory development of the rule was not urgent.[3] It was in February 2017 when the government approved the Royal Decree that included the regulation of the law, due to the increase in inflation observed in the previous months, which could jeopardize, according to the government, the economic growth that Spain had experienced in recent years, based on competitiveness in foreign markets.[4]
Social response
editThe UGT union criticized the law because, in its opinion, it could affect collective bargaining and reduce the purchasing power of workers in companies working for the public sector. According to UGT, the main problem of Spanish competitiveness is not in inflation, but in the lack of innovation, and therefore the deindexation law is not the best way to promote the competitiveness of Spanish companies.[5] For its part, the Economic and Social Council (Spain) warned that the law could discourage the participation of companies in long-term projects such as those related to public works.[6]
See also
editReferences
edit- ^ Vargas Pérez & Peñaloza Figueroa 2015, p. 339.
- ^ Vargas Pérez & Peñaloza Figueroa 2015, p. 346.
- ^ "El Gobierno desvincula los precios públicos de la evolución del IPC" (in Spanish). Expansión. 3 February 2017. Archived from the original on 22 August 2022. Retrieved 3 June 2017.
- ^ "Guindos desempolva la Ley de Desindexación para proteger a la economía de la alta inflación" (in Spanish). The Economist. Archived from the original on 22 August 2022. Retrieved 3 June 2017.
- ^ "UGT denuncia que la Ley de Desindexación puede suponer una "injerencia" en la negociación colectiva" (in Spanish). La Vanguardia. 3 February 2017. Archived from the original on 22 August 2022. Retrieved 3 June 2017.
- ^ "El CES critica el reglamento sobre desindexación de la economía y avisa de que paralizará inversiones" (in Spanish). The Economist. 29 June 2015. Archived from the original on 22 August 2022. Retrieved 5 July 2017.
- Vargas Pérez, Carmen; Peñaloza Figueroa, Juan Luis (2015). "Indexación, competitividad e inflación en la economía española". Foro, Nueva época. Revista de la Facultad de Derecho UCM. 18 (1): 339–358. Archived from the original on 22 August 2022. Retrieved 3 June 2017.