LABOR MARKET REFORM (FEBRUARY 2012)
1.- Dismissal cost reduction to address labor market duatliy
Unfair dismissal : compensation of 33 days per year worked (up to 24 months). Down from 45 days and 42 months.
Encou
rage the use of fair dismissal : compensation of 20 days per year worked (up to 12 months). New regulation:
- Effect: fair dismissal to be the main channel to end the contract as oppose to now.
- Reform collective and objective redundancies to reduce legal uncertainty and high cost
- Effect: increase agility and the use of collective fair dismissal (compensation of 20 days per year worked)
- Monitor the development of the capital fund for dismissal (Austrian fund)
2.- Job intermediation and training
Temporary Employment Agencies are now authorised to act as private placement
Improve professional training.
New training contract (youth 16-30 years)
Modify the current permanent part-time contract to allow overtime and increase its flexibility.
Regulation of teleworking to promote its implementation.
3.- Internal Flexibility and collective bargaining
- Facilitate contract modifications.
- Remove administrative authorisation to suspend the contract
- Collective bargaining reforms
4.-Encouraging permanent contracts
Creating a new permanent contract
New bonuses
Reintroduce the prohibition of linking different temporary contracts further than 24 months.
FINANCIAL REFORM (FEBRUARY 2012)
1.- Restructuring of real estate assets
New provisions and capital requirements:50 billion euros
Troubles assests
Non-troubles assest
The deadline is December 31st 2012.
After the reform the specific provisions plus capital buffers will raise the coverage of land, ongoing developments, finished properties and housing.
2.- Mergers framework
The financial reform encourages merges and consolidtions
Adavantges:
Deadlines: banks that merge will be allowed an additional year for the cleanup The required cleanup could be done at the expenses of total assests