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Spain Firing Aid Reversal Risks Jobs, OECD’s Bassanini Says

Spain’s labor overhaul risks running out of steam after the government scrapped aid that encouraged small companies to hire permanent staff, according to an Organization for Economic Cooperation and Development economist.

The 2012 overhaul, which made it cheaper to fire workers and easier to reduce wages, extended subsidies for small companies cutting staff. The measure, which brought the cost of firing permanent workers closer to that of temporary staff, was scrapped on Jan. 1 this year.