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Tuesday, Jul 01, 2025

European Union Prepares Major Sanctions Against Spain for Public Sector Temporary Employment

European Union Prepares Major Sanctions Against Spain for Public Sector Temporary Employment

Brussels initiates two formal procedures against Spain for failing to comply with employment regulations and recovery plans.
The European Commission has opened two preliminary procedures against Spain in response to the country's failure to meet established employment regulations, particularly regarding the high rate of temporary contracts within the public sector.

This violation of the law and the national Recovery Plan, which aims to limit temporary employment to 8% by the end of 2024, puts Spain at risk of incurring significant fines from the EU.

As of now, approximately 30% of public sector positions in Spain are temporary, a statistic that remains unchanged despite ongoing promises to address this issue.

The Commission recently granted the Spanish authorities a two-month period to implement necessary reductions in temporary employment to avoid these infringement proceedings.

The crisis in public sector employment stability has resulted in widespread dissatisfaction among civil servants, who are experiencing stagnant wages alongside high levels of temporary contracts.

In critical sectors such as healthcare and education, data indicates that around 50% of the workforce is employed on temporary contracts.

Furthermore, the percentage of temporary roles in local governments and autonomous communities approaches 40%.

This reliance on temporary contracts raises concerns regarding job security and the overall quality of public services.

The Spanish government's commitment to addressing this issue dates back several years.

In 2021, the administration fast-tracked a plan aimed at reducing the rate of temporary employment in public administration to the target of 8% by the end of 2024. This initiative was incorporated into Spain’s Recovery Plan, which aligns with broader European Union strategies for economic recovery following the COVID-19 pandemic.

Government officials expressed optimism about achieving these goals, with María Jesús Montero, Spain's First Deputy Prime Minister and Minister of Finance, stating that eliminating excessive temporary employment in the public sector was essential.

She emphasized that those performing structural tasks within the administration should not be employed in temporary roles.

However, as the deadline approaches without significant progress, the prospect of financial penalties from the EU looms larger for Spain, adding pressure to the government to take decisive action on this long-standing issue.
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