The Council of Economists and Fedea ask for structural reforms for younger individuals | Economy | EUROtoday

Low salaries, precarious jobs and an overheated housing market are a number of the parts that the majority situation the financial way forward for younger individuals, who’ve increasingly difficult to emancipate. Given this situation, the General Council of Economists (CGE) and the Fedea Analysis Center have requested that structural reforms be launched in numerous areas, from taxation to schooling and labor market, within the fifth session of Fedea-CGE conferences, titled The financial state of affairs of younger individuals in Spain and held on Wednesday.

During the day, consultants from the 2 companies have addressed the elements that situation the financial state of affairs of youthful cohorts. The debate has been moderated by the president of the CGE, Miguel Vázquez Taín, and the manager director of Fedea, Ángel de la Fuente, and, along with Villares, he has had as audio system José Ignacio Conde-Ruiz (Professor of the UCM and deputy director of Fedea), Raquel Jurado (Member of the Registry of Fiscal Advisors Labor).

“The combination of a high temporality rate of 60.5% in contracts of children under 30 in 2024, together with an average salary of 1,558 euros gross monthly, which is 27% lower than the national average salary, and that 46% of young people have part -time contracts involuntarily, configure a precarious work environment that delays emancipation,” mentioned Villares State pact for youth employment.

In addition to this proposal, consultants have put different initiatives on the desk, comparable to selling twin and college skilled coaching, strengthening hyperlinks between instructional facilities and corporations and enhancing coaching in digital competences. They have additionally really helpful to design tax advantages targeted on youth with emancipation and entrepreneurship as targets, deepen the help to conciliation and encourage entry to housing, each increasing the supply and reinforcing assist assist and introducing tax incentives for younger properties with low earnings.

Vázquez Taín has pressured that the tax incentives geared toward younger individuals are scarce and, in case of, fragmented between communities and inadequate to compensate for a tax strain that’s proportionally extra burdensome, particularly within the case of the oblique imposition, for the bottom salaries. “Although many young people do not pay tax due to their low income, they assume a significant burden on social quotes and indirect taxes such as VAT,” mentioned Jurado, who has defended to introduce tax incentives for recurring housing, coaching and entrepreneurship.

The president of Fedea, Ángel de la Fuente, has lamented that the present social safety scheme advantages the oldest, and that the pension system now not manages to finance with the brand new incorporations to the labor market, for the reason that demographic pyramid has been invested and desires to tug assets that ought to be used for different key insurance policies comparable to schooling or innovation. “This imbalance should be corrected,” he mentioned. Conde-Ruiz has proven an identical place and has put the concentrate on the alleged hole between generations: it has indicated that the lease of younger individuals has fallen by 10% since 2008, whereas that of these over 65 has grown 8% in the identical interval, whereas the typical age of emancipation already exceeds 30 years.

“Young people in Spain face a double structural disadvantage: the loss of the demographic impulse that previously supported economic growth and a lower capacity for political influence due to the aging of the electorate,” mentioned Fedea’s deputy director. In this situation, he has reiterated, the one method for per capita earnings to progress goes by a rise in productiveness.

“It is proposed to promote indefinite hiring, especially through specific aids aimed at young people belonging to vulnerable groups. It is also key to review the practices and scholarship system to guarantee its formative nature, with minimal remuneration and decent conditions, in line with the future statute of the fellow. Likewise, youth employment must be promoted in strategic sectors,” Villares added.