Salary Increase & more – 28th Dec 2023

Buenos días from Gracia! This is the Rorshok Spain Update from the 28th of December twenty twenty-three A quick summary of what's going down in Spain.

Three million workers and their employers will have to wait until the new year to find out how much salaries will increase in twenty twenty-four.

The Ministry of Labor's proposal to increase the minimum interprofessional salary or SMI by 4% is facing opposition from some unions and employers. Disagreements between the government and employers seeking compensation in public contracts complicate the minimum wage decision. Concerned about potential profit impacts, businesses with government contracts suggest tying these contracts to the minimum wage, ensuring that contract prices increase when the minimum wage rises. Unions and workers support this proposal, aiming to allocate any additional government funds to raise contract workers' salaries.

Consequently, the government has postponed the final decision until January. The current SMI stands at just over 1,000 gross euros (in fourteen payments) until the 1st of January.

Depending on the timing of the decision, companies may incorporate the wage increase in January or be required to do so in February, meaning they will have to compensate workers in February for the delayed month.

Meanwhile, the European Commission is considering a request from the Partido Popular or PP and the Socialist Party, PSOE, to mediate in the long-pending renewal of the General Council of the Judiciary or CGJP.

The CGPJ, traditionally composed of twenty members tasked with appointing judges and upholding justice, has set records with its renewal deadlock. By January twenty twenty-three, the remaining council members had held their positions for over nine years. According to the constitution, members of the CGPJ should be appointed every five years.

The current council body only has seventeen members because of three vacancies (one due to retirement, another due to death, and one arose because of resignation.) There are also numerous vacancies in other judicial positions because of the long-pending renewal.

For its part, Brussels is studying the appeal from Spanish leaders Alberto Núñez Feijóo and Pedro Sánchez, emphasizing its role in EU member states' affairs, saying it won’t "mediate" negotiations but “supervise.”

Speaking of the EU Commission, Spain hands over its presidency to Brussels going into January.

Politico's Brussels Playbook newsletter interviewed Marcos Alonso, Spain's permanent representative to the EU, discussing the successes and challenges faced by Spain at the EU helm.

He said that Spain's time presiding over the EU has been tense. From trying to keep member states unified in support for Ukraine, to leading very tense discussions over the Israel-Hamas conflict—this period has been quite a challenge. Alonso, however, was quite positive, Citing achievements like closing seventy-one legislation negotiations, including groundbreaking regulations for artificial intelligence with the world's first AI law called the AI Act.

The thirty-hour negotiation for the migration deal was a significant event, leaving a lasting impression on Alonso. He emphasized its importance for the EU, as the deal pledges to establish a uniform approach to accepting and welcoming migrants, including provisions for treating asylum seekers uniformly across the EU.

As Belgium assumes the EU presidency on the 1st of January, Alonso advises them to "Enjoy every minute of it."

Since we mentioned migration...

María Farnés Martínez, the senior prosecutor of the Canary Islands, has acknowledged this week that around 200 minors, all under eighteen, were mistakenly placed with adults in reception centers during the surge of migrant arrivals to the islands in the summer, particularly on El Hierro, which is the second-smallest and southernmost of the Canary Islands.

Farnés has said they are planning a summit in January with all administrators to propose changes to the island's migrant influx protocol so that unaccompanied minors are properly taken care of and identified, so this doesn't happen again.

Last week, we covered the U.S.-led Red Sea alliance in response to the Iran-backed Houthi militia supporting Palestine, which attacked shipping containers en route to Israel through the Red Sea. Here's the latest update:

On Thursday, the 21st, the E.U.'s response to protecting commercial ships in the Red Sea turned chaotic, as Spain initially supported but then dramatically blocked the decision to join the U.S.'s Operation Guardian of Prosperity coalition project. At first, the E.U.'s Political and Security Committee had agreed to expand the E.U.'s Atalanta mission, which fights pirates off the coast of Somalia, and join the U.S.-led Red Sea mission.

However, when it came to signing the deal, Spain vetoed the decision.

Yolanda Diaz, Spain's vice president and leader of the coalition partner, Sumar, has said the reason for a veto is the West's inconsistencies. Arguing that they are quick to protect business interests but block U.N. efforts to call for a cease-fire in Gaza.

From maritime tensions to the economy…

According to the Official State Gazette, the tobacco industry better watch out heading into twenty twenty-four, as the Government wants to increase tobacco prices further.

Since the 16th of December, some brands like Cohiba and Trinidad have already been forced to increase their prices. However, with the Gazette’s announcement, other brands will get more expensive, too. Still, compared to other countries raising tobacco prices, in Spain, the increases are expected to be relatively moderate. For instance, the UK raised its duty tax on hand-rolling tobacco by 10%, meaning a mid-range fifty-gram pack of tobacco costs around forty euros; in Spain, the equivalent is usually under ten euros. In France, however, a fifty-gram pack is closer to twenty euros.

The final price rises are expected in January through a retroactive royal decree, meaning companies may be forced to compensate for any price adjustments retrospectively. Once determined, this implies that the new tobacco prices will apply to future sales and impact past transactions.

What did Spain use the internet for in twenty twenty-three? Market Research company GfK DAM's 'Wrapped Digital twenty twenty-three' report found out that, this year, the most visited platforms were Google, YouTube, WhatsApp, Facebook, TikTok, Booking.com, and……Burger King. Google led the way with over 38 million monthly users, followed by YouTube with 36 million and WhatsApp with thirty-four. Facebook and Instagram dominated the social network market with more than 33 million and 31 million. Afterward, the two T's, Twitter and TikTok, gained twenty-one million, swiftly followed by LinkedIn with more than eleven million.

Financially, CaixaBank leads with over 11 million users. Surprisingly, Burger King takes the lead with over five million in delivery and dining.

Next up, with the festive spirit still coursing through our veins, the Guardia Civil has had to seize over 10,000 toys from six shops in Manises, Valencia province, for violating EU safety marking rules.

Police are investigating two individuals for selling counterfeit branded items during the festive season. Six of the seven stores inspected were breaching regulations.

The confiscated merchandise is worth approximately 5,000 euros. The toys also had the EU “CE” mark, which indicates compliance with EU trade and safety standards. However, on further inspection, the toys displayed a “CE” closer together, resembling 'China Export' labeling.

Shifting our focus to the weather now…

The Spanish Meteorological Agency (or Aemet) has warned of significant weather changes towards the end of twenty twenty-three and the start of twenty twenty-four.

After a period of stability and high temperatures in December, the country will experience a transition to unstable weather and shifting patterns.

On Wednesday, the 27th of December, an Atlantic front brought prominent changes, affecting the northwest with periodic rain and strong winds, extending to Cantabria and northern Castilla y León.

Additionally, there are concerns about air quality in major Spanish cities, posing an additional challenge along with fog and frost.

And finally, to ring in the New Year on New Year's Eve or Noche Vieja as the Spanish do, just grab twelve grapes (it's better if they're peeled) and eat one at each chime of the clock at midnight. It´s harder than it sounds!

Aaand that's it for this week!

Tired of Christmas movies and jingles? Don’t want to think about the awkward upcoming dinner with the fam? We’ve got the best solution. Stream the Rorshok Spain show on your favorite listening platform.

Happy New Year from the Rorshok Team!

Remember you can give us a late-Christmas present: you can support us financially with the link in the show notes.

¡Hasta la próxima!