Breaking the Equilibrium between Flexibility and Security

Abstract

The Spanish Labour Market Reform of 2012 was presented by its proponents as an instrument to bring Spanish practice into line with the approach – and standards – that prevail in the European Union's most successful states, but as we argue in this article, the Reform in fact stands at odds with objectives and policy tools proposed, and actually legislated, by the EU. The Reform breaks the proportionality principle between flexibility and security, facilitating the termination of contracts without implementing mechanisms of security such as training and unemployment benefits. As a result, precarious work will be a consolidated trend for the youth, along with emigration. Other broadly felt consequences of the Reform, including growing inequality and increasing judicialisation, raise the economic costs for the system.