Spain's unemployment benefits blamed for high jobless rate by central bank governor

Bank of Spain governor José Luis Escrivá told the Congress of Deputies that Spain’s unemployment rate remains higher than in other European countries because the unemployment protection system is unusually generous. He noted that the contribution rate for unemployment insurance is roughly double that of any EU nation and that benefits for workers over 52 are paid indefinitely. Escrivá argued that the scale of the subsidy discourages labour‑market participation and should be viewed as a productivity issue rather than a redistribution policy.

The remarks were made during his annual address to parliament, where he linked the generosity of the system to the historic differential in unemployment levels between Spain and its European peers.