Spain's CEOE chief warns of regulatory suffocation and institutional drift

Antonio Garamendi, president of the Spanish Confederation of Employers’ Organizations (CEOE), warned that Spain is experiencing an "institutional drift" in which decision‑makers prioritize electoral and ideological interests over economic stability. He highlighted that the country has been without a General State Budget for three years, undermining the smooth running of economic activity and employment.

Garamendi cited 61 changes to core labour‑relation regulations between September 2022 and December 2025, many adopted without social dialogue or meaningful consultation. He described the result as "regulatory suffocation," creating legal uncertainty and intruding on companies’ freedom of organisation. He also noted that roughly 35 % of wage increases are absorbed by taxes and social‑security contributions, leaving workers with only about 65 % of the nominal raise.

The CEOE chief called for an indexed personal income tax to protect purchasing power and urged the government to adopt a forward‑looking, unified strategy to restore confidence among Spanish businesses.