One of the economic policy priorities raised by businessmen is to resolve the delicate financial situation, in terms of the challenge of sustainability in the medium and long term, which entails public pension system. Among these priorities, the survey published by the Business Circlealso places the improvement of the efficiency of Public Administrations, market unity, the labor market, taxation, education, innovation and business size, as some of the points that must be addressed by the legislative power to achieve an improvement in the business climate that results in an increase in the competitiveness of the Spanish productive fabric.
Given the survey carried out by the business think tank of 450 companies, the recipe that employers pose to the challenge of sustainability and adequacy of pensions is relevant. Among the measures that would contribute, the first place is the need to reduce the unemployment rate (62.8%), but the promotion of incentives, both for companies and workers, to prolong active life beyond the legal retirement age (58.6%), and the constitution of a fund individual capitalization under the ‘Austrian backpack’ model (56.5%). Nor is it negligible the 50.8% who see the promotion of private pension plans as the first way to improve and the 32.9% who believe that the best option is an increase in the legal retirement age (67 years to from 2027).
On the other hand, two of the measures approved by the Government in the two legs of the pension reform carried out between the years 2021 and 2023, the increase in social contributions and the increase in the maximum base contribution rates are two of the options that garner the least support among the business owners consulted by the Círculo regarding the sustainability of the public pension system, with 10.9 and 10% respectively.
On the aspect of the irreducible volume of unemployment In Spain, the study recalls that our country has had high rates of structural unemployment for decades that require a profound reform of the labor marketagreed with the social agents, which provides the system with greater flexibility, and brings Spanish regulations closer to those of the countries around us and to the new economic and labor realities.
In this area, among the measures under negotiation or already approved, more than 80% of the companies surveyed believe that those that will have the greatest negative impact on their company are the prevalence of the regional agreement over the state one, the restrictions on external flexibility in matters for example, causality or compensation for dismissals, and the reduction of the working day to 37.5 hours a week with the same salary.
However, in general the businessmen consulted consider that the public spending management In Spain it is not efficient. On this occasion, the percentage that has expressed this negative assessment amounts to 91.2% (88.1% in the 2023 survey), highlighting that 69.6% consider it inefficient (67.8% in 2023) and 21 .6% regular (20.3% in 2023).
Among the priorities to be included in the next Public Administration Transformation Law, three-quarters of those surveyed point out firstly the evaluation of the efficiency of spending and public policies. Nearly 60% highlight the importance of coordination between Administrations to avoid duplications and a little more than 50% promoting public-private collaboration in the provision of public services.
Government interventionism
On the other hand, the survey on the prevailing business climate at this time in Spain initially denotes a worsening of the general outlook for the economy for the next year. While 40% of those surveyed in the previous installment indicated their negative vision for this year, the sentiment widens to 50% for 2025. Here two aspects predominate in the bogging down of the outlook: the worsening of the productivitywhich is between 10% and 15% below the European average since 2008, and the impact of the different geopolitical tensions. Furthermore, around 40% highlight the reduced investmentmainly in the private sector, and the weak growth of the main European economies as a source of negativity about the future progress of the economy.
The widespread perception of deterioration in the key competitiveness factors of the Spanish business environment remains. The companies surveyed consider that the three elements of competitiveness that have deteriorated the most in the last twelve months are Government intervention in business activitiestransparency in government decisions and legal certainty.
On the other hand, the general assessment of the impact on the Spanish economy of the latest economic policy measures adopted is negative, especially in the case of those related to the increase in tax pressure and the non-deflation of the personal income tax bases (93.6% compared to 72.5% in the 2023 survey), and the imbalances in public accounts (87.9% compared to 84.3% a year ago ).
In this context, among the main obstacles that they identify in their activity, more than 60% of the companies highlight the labor costsand more than 50% the difficulties in accessing qualified talent. There is also widespread concern about high taxation, uncertainty about Spanish politics and the bureaucratic burden, with more than 40%.
Not in vain, in general, businessmen perceive a good dynamics in your sector. The assessment is good or very good for 38.5% of those surveyed in 2024 and for 36.3% in 2025, above those who are more pessimistic, just over a third. In the Círculo 2024 Business Surveyin line with the 2023 results, about half of the companies predict that their turnover will increase in the next 12 months. Contrast this data with only 18.5% who expect an improvement in margins (37.3% estimate a fall). Around 30% expect increases in their exports, productive investment and workforce.
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