The second vice president and Minister of Labor and Social Economy, Yolanda Díaz, has announced that the Government will closely follow, together with unions and business organizations, the possible economic and labor effects derived from the conflict in the Middle East after the invasion of the United States and Israel to Iran last weekend. The minister does not rule out adopting new measures if the situation worsens and the war progresses, although she recalled that Spain already has a “labor and economic shield” designed over the last six years to face crises of great impact, as Minister Carlos Corpus also advanced this Thursday.
Díaz made these statements after meeting this Wednesday with CEOE, Cepyme, CCOO and UGT, in a meeting in which the possible impact of the conflict on the Spanish economy was analyzed and the instruments available to protect companies and workers were reviewed.
The Minister of Labor explained that the objective is to anticipate the possible economic effects of the escalation of war, in line with the strategy applied in previous crises. “We are preparing. In the Ministry of Labor what we do is act ex ante“We have done it in a pandemic, we have done it in all crises,” said Díaz, also citing episodes such as the eruption of the La Palma volcano or the recent natural disasters in Spain.
The minister also conveyed a message of calm, stressing that the Government already has legal and budgetary mechanisms to respond in the event that the conflict has repercussions on the productive fabric. These tools include measures aimed at preserving jobs and supporting businesses, similar to those deployed in previous crises.
Possible measures if the situation worsens
During the meeting, the social agents also raised the possibility of making public the fiscal impact of the support measures that may be adopted, an issue that Díaz considered “very interesting,” although he acknowledged that this type of information is not usually disseminated.
The vice president recalled that the cost of policies aimed at saving companies and maintaining jobs can be high for public coffers, although she defended that these interventions are key to cushioning the effects of economic crises.
For the moment, the meeting has not concluded with the approval of new concrete measures. However, the Ministry of Labor and the social partners have agreed to create a monitoring table that will allow the evolution of the conflict to be evaluated and decisions to be made if necessary. In this context, Díaz did not rule out the implementation of new support instruments, such as possible bonuses or specific aid, in case the deterioration of the international situation has direct consequences for the Spanish economy.
The Executive trusts that the impact of the conflict in the Middle East will be limited, but has chosen to strengthen surveillance and coordination mechanisms with unions and businessmen to react quickly to any deterioration in the economic context.