A DENSE, COMPACT town of 58,000 people near the gateway to Andalucía from Spain’s central plateau, Linares has been successively a centre of lead mining, a railway hub and the site of a large factory making Santana jeeps. Today it is a town with a reputation: at 33%, its unemployment rate is the highest in Spain. The Santana factory, with more than 2,000 jobs in its heyday, closed in 2011. High-speed trains to Seville and Granada bypass Linares.
Long before the pandemic, Spain stood out in Europe for its chronically high unemployment, especially among young people, and for the high number of workers on temporary contracts . The slump occasioned by the financial crisis of 2007-09 saw millions join the ranks of the jobless, though it was followed by a strong recovery . Now the pandemic has hit Spain’s economy harder than its European neighbours once again.
The second boost is that over the next three years Spain is due to receive €70bn in grants from the EU’s Next Generation recovery scheme, along with a similar amount of soft loans. Much of this will go on big projects aimed at creating a greener, more digital economy, such as one for electric cars and a battery factory. But there will be plenty of money, too, for overhauling public administration and vocational training, and for active labour-market policies to help the unemployed find jobs.
Ms Calviño, a former budget director at the European Commission, leads the government’s reformist wing. She says Spain needs a bundle of measures that strike a balance between flexibility and curbing temporary contracts. She hopes talks with the unions and business will bring agreement on these by the end of this year. In a reshuffle in July she became first deputy prime minister.
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RT : Spain already suffered from chronically high unemployment. Now the pandemic has hit its economy harder than its European neighbours
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