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Economics

Spain Hikes Minimum Wage 8% as Business Groups Walk Away

  • Industry unhappy with mounting burden of increasing costs
  • Raise may boost standing of Labor Minister Yolanda Diaz
Euro banknotes in a check out area inside a supermarket. 

Euro banknotes in a check out area inside a supermarket. 

Photographer: Andrey Rudakov/Bloomberg
Updated on

Spain will raise its minimum wage by an inflation-busting 8% after the government and unions struck a deal, brushing aside calls from business groups to refrain from increases at a time of economic uncertainty.

Prime Minister Pedro Sanchez, who faces a battle for reelection this year, has faced fierce opposition on the issue from industry lobby groups, which had walked away from talks in recent days.