The head of the Spanish Confederation of Business Organizations (CEOE), Antonio Garamendi, has expressed serious concern over union initiatives. He stated that introducing additional supplements to the minimum interprofessional wage (SMI) could trigger an uncontrollable increase of 25-30%. According to him, such measures promoted by the CCOO and UGT unions do not comply with the current Workers’ Statute and create a dangerous precedent for the country’s entire economic system. He made these remarks in Madrid ahead of the ‘XII Premios Cepyme’ awards ceremony.
Commenting on the unions’ proposal to raise the SMI by 7.5% by 2026—which would bring it to €1,273 per month before tax—Garamendi emphasized that the final decision on this matter always rests with the government. Although the law provides for consultations with social partners, it is the executive branch that sets the minimum wage. “We’re once again hearing about some kind of expert commission. I doubt they are really experts in what we’re discussing,” the CEOE chief noted skeptically, adding that, at present, the employers’ association has no information about the commission’s work, but they are ready to analyze any proposals that emerge.
Garamendi was particularly outspoken about the debate on taxing the minimum wage, calling it “absurd.” He insists that tax laws apply equally to everyone, and if someone wants to change them, it should be done through parliament, not through ad hoc decisions. “Many people with such salaries are currently paying taxes. So what does that mean? Were these people supposed to pay before, but now, just because I wish it, they don’t have to pay?” he asked rhetorically, highlighting the inconsistency of such proposals.
The CEOE president recalled that his organization has long advocated for deflating the personal income tax (IRPF) scale, meaning an adjustment of tax brackets to reflect inflation. Since this hasn’t happened, the state receives “windfall revenues” at the expense of citizens. “There should be a clear rule about whether we do or don’t pay taxes from a certain amount. But what we have now is that it’s normal for people to pay today, who, in my opinion, shouldn’t have to pay tomorrow. But they have already paid today,” Garamendi explained. He criticized the government for, in his view, making changes to tax policy based on “whether it brings in more votes or fewer,” calling this approach “extremely irresponsible.”
“I believe we need to sit down and discuss that very IRPF deflation we’ve always talked about. The real issue is that many people who complain about their wages are actually struggling because of taxes that perhaps shouldn’t have been collected,” he concluded.
For reference, the Spanish Confederation of Business Organizations (CEOE) is the largest and most influential business association in Spain, representing the interests of companies and self-employed workers across all economic sectors. Founded in 1977, it serves as the main social partner in dialogue with the government and trade unions. Antonio Garamendi Lecueona, a Basque businessman, has served as CEOE president since 2018. He is known for his firm stance in defending business interests, particularly on issues related to taxation, labor legislation, and social policy.
