Regulatory Alerts2012-07-14
Royal Decree-Law 20/2012, of July 13, on measures to guarantee budgetary stability and promote competitiveness
The Spanish Government issued Royal Decree-Law 20/2012 to address macroeconomic imbalances and ensure compliance with EU deficit targets through fiscal consolidation and structural reforms. The decree imposes strict austerity measures on public sector employees, including salary freezes, suspension of extra payments, and reductions in leave and benefits, while also modifying Social Security contribution bases to align with tax regulations. Additionally, it introduces structural changes to enhance competitiveness by opening professional services to competition and adjusting pension incompatibility rules for high-ranking officials.
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