The Government of Spain boosts social economy sector

Moncloa Palace, Madrid

The Second Vice-President and Minister for Work and Social Economy, Yolanda Díaz, and the Minister for Education, Vocational Training and Sports and Government Spokesperson, Pilar Alegría, during the press conference after the Council of Ministers (Pool Moncloa / Jose Manuel Álvarez)

The Council of Ministers has approved two pieces of legislation resulting from dialogue with the social partners that seek to promote the social economy and to combat discrimination against LGTBI people in the business world, respectively.

Promoting the social economy

The draft Comprehensive Law for the Promotion of the Social Economy modernises the rules regulating a sector that "forms part of the central role and focus of the Government of Spain's economic and social action", according to the Second Vice-President and Minister for Work and Social Economy, Yolanda Díaz.

Díaz recalled that thanks to the current executive, the social economy has its own Secretary of State, a Strategy and a PERTE endowed with more than €1.7 billion. The government has also reactivated the Social Economy Council, managed to advance this matter within the EU, and promoted the first resolution on this issue in the UN. The sector brings together more than 43,000 companies in Spain, employs more than 2.5 million people and represents more than 10% of GDP.

The Second Vice-President of the Government of Spain and Minister for Work and Social Economy, Yolanda Díaz, at the press conference after the Council of Ministers | Pool Moncloa /Borja Puig de la Bellacasa

"It is an economy of solidarity and democracy, fundamentally in deliberation and decision-making, which is why we can say that today we are developing in a very precise way the constitutional mandate in article 129," said Yolanda Díaz. The vice-president underlined the importance of cooperatives, insertion companies, guilds and the sector's other forms in terms of women's work and in caring for the environment, as well as in areas such as agriculture, fishing, education, housing and culture.

Equality, anti-fraud and labour market integration

In the case of cooperatives, the draft law adapts their functioning to new technologies, which are incorporated into decision-making and access to all the information that forms part of the democratic debate in the deliberative bodies. The law also requires these companies to have equality plans when they have more than 50 employees, and creates a register of cooperative companies that is valid for the whole country.

The vice-president underlined that the text also aims to "rebut the companies that commit fraud to evade the rules of Spanish labour law", such as in cases of subcontracting with a level of economic dependence on the contractor equal to or greater than 75%.

The text also modifies the regulation of the so-called insertion companies, which are entities that facilitate the participation in the labour market of people in a situation of vulnerability. It not only broadens the definition of the groups in this situation; but it also creates a new contract model for transition to ordinary work, so that once the people in this group have been tutored and trained, they can be integrated into the sphere of ordinary employment.

Fight against discrimination

The Second Vice-President of the Government of Spain and Minister for Work and Social Economy, Yolanda Díaz, during the press conference after the Council of Ministers | Pool Moncloa /Borja Puig de la Bellacasa

The Council of Ministers has also approved a set of measures for the equality and non-discrimination of LGTBI people in companies, which develops the agreement signed with the social partners on 26 June.

The second vice-president stressed that this agreement, the 20th in the context of social dialogue, strengthens Spain's position at the forefront of LGTBI rights worldwide. "What we are doing is bringing democracy to companies and putting an end to one of the most aggressive forms of discrimination in our country," said Yolanda Díaz. By way of example, the Minister for Work pointed out that among LGTBI people, three out of four teachers hide their status to avoid suffering serious consequences in the workplace, and that 40% of trans people are expelled from the labour market in the selection processes.

Within three months of the entry into force of the Royal Decree approved today, companies will have to reopen their collective agreements to incorporate measures to promote equality and prevent any form of discrimination. Among these measures are the guarantee of access to employment without bias, specific training processes on these issues, permits and social benefits that address diversity with special attention to trans people, and a plan against harassment of LGTBI people.

If there is no negotiation or no agreement is reached, a minimum of the measures set out in the standard will be applied. Yolanda Díaz emphasised that the Labour and Social Security Inspectorate will monitor compliance, thanking the LGTBI groups, trade unions and employers' organisations for their work. "Today our country is much better," he said.

Subsidies: housing and cultural capital of Barcelona

The Minister for Education, Vocational Training and Sports and Government Spokesperson, Pilar Alegría, during her speech at the press conference after the Council of Ministers | Pool Moncloa /Borja Puig de la Bellacasa

The Minister for Education, Vocational Training and Sports and Government Spokesperson, Pilar Alegría, has announced the approval of a direct grant of housing subsidies amounting to €46.6 million for 2024.

Alegría explained that these subsidies, which address an issue that is "fundamental and a priority for society as a whole", will be used for the construction of rental housing in Barcelona, Mallorca, Ibiza and Menorca (€29 million), rehousing in Cañada Real (€8.37 million), and the rehabilitation of the Las Chumberas neighbourhood in Tenerife (€4.78 million).

The Council of Ministers has also given the go-ahead for a grant of €20 million to mark the designation of Barcelona as cultural capital. Pilar Alegría explained that this aid will be used to hold different events related to music, art and science.

Other agreements: tender for the Muface concert

The government spokesperson referred to the Council of Ministers' authorisation of the tender for the Mutualidad General de Funcionarios Civiles del Estado (Muface) for 2025-2026, an agreement that offers health coverage via insurers to some of the civil servants serving in Spain and in 123 countries.

Pilar Alegría stressed that the new tender includes "the biggest increase in history", €300 million more than the previous one, to total just over €2.68 million. This is a two-year agreement to guarantee health care for the group covered which, including both policyholders and beneficiaries, exceeds 1.5 million people.. A total of 65% of the members are primary, secondary or university teachers, and 17% belong to the General State Administration.

Current affairs: President's trip to the Vatican and Cyprus

The Minister for Education, Vocational Training and Sports and Government Spokesperson, Pilar Alegría, during her speech at the press conference after the Council of Ministers | Pool Moncloa /Borja Puig de la Bellacasa

Minister Alegría announced that the President of the Government will travel to the Vatican next Friday, where he will be received in audience by Pope Francis. The main focus of this meeting will be the analysis of the situation in the Middle East, with the aim of "continuing to join forces in favour of peace".

"The president will again express our country's position to the Pope: Spain advocates focusing all efforts on a diplomatic solution that includes the initiation of a political process to ensure that peace and security return to the region", explained Alegría, who recalled that the Pope has also made constant appeals for an end to violence and understanding between nations. "It is time to join forces. We cannot resign ourselves to accepting that war and violence are the way to deal with differences. Dialogue and diplomacy must be established as opposed to military means", he concluded.

At the end of this hearing, the president will travel to Cyprus to take part in the MED9 summit, where the countries of southern Europe are meeting to discuss issues of common interest for the next European Council. The heads of state or government of Portugal, France, Italy, Greece, Malta, Cyprus, Slovenia and Croatia will also be present, as will the President of the European Commission, Ursula von der Leyen, and King Abdullah II of Jordan, who has been invited to address the Middle East conflict.

Non official translation