Spanish worries

Both of Spain’s main union confederations — CCOO and UGT — have expressed their concern over the latest official inflation figures, which show prices falling by 0.3% in the 12 months to July.

They fear that Spain could be entering a period of deflation, and they have called for wage increases to boost domestic demand.

CCOO points out that 40% of employees covered by company-level deals have had pay freezes in 2014, compared with only 18% for employees whose pay is negotiated at industry level. This is another explanation, says the CCOO, of why the government in 2012 introduced legal changes which gave company deals priority over industry-level agreements.