I read the new labor laws of Spain and I am disappointed. My plan which I presented to both ministers, Luis de Guindos and Cristobal Montoro, a plan that made hiring people much more affordable was not seriously considered. Instead old industry won. What the new plan does is that it makes it much cheaper to fire people. All entrepreneurs who have growing companies, as it is my case with Fon, were looking for a plan that made cheaper to hire people. Half of what companies spend on compensation for the average employee in Spain goes to the government in a mixture of taxes that are paid both by the employer and the employee coupled with consumption taxes. What I was hoping for is that for a few years until unemployment fell from the sky high levels of today, around 23%, that government would get out of the way of companies that are growing and let them hire without paying taxes. In this way two objectives would be accomplished, employment would grow and employees would earn more after tax money and the economy would grow. And even though government would not get more money per hired unemployed worker initially, it would at least stop paying benefits and in 4 years it would start getting benefits again (my plan is below in Spanish) Instead old industry won and now it will be much cheaper for declining industries to fire people and shrink, unemployment will grow. The PP had two choices, they could reward those who hire or reward those who fire, and they chose the latter.

This post that I wrote a few months ago is still valid after the reform

http://english.martinvarsavsky.net/spain/the-euro-will-be-fixed-in-six-months-spain-in-a-decade.html

And this is the plan (in Spanish) that I presented to Cristobal Montoro and was completely ignored

http://spanish.martinvarsavsky.net/espaaa/reunion-con-cristobal-montoro-sobre-mi-plan-para-hacer-del-ano-2012-el-ano-del-empleo.html
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