20220215-IMF-Spain_Selected_Issues_61页_2mb

Active Labor Market Policies (ALMPs) in Spain

• Challenges:

  • Past ALMPs ineffective in reducing unemployment, with limited evaluation and poor targeting for vulnerable groups.
  • High heterogeneity in regional services and weak coordination between active/passive policies.
  • Insufficient focus on training (lowest share of spending) despite its proven effectiveness from OECD studies.

• Recommendations:

  1. Increase Training Investment: Boost spending on skill-focused programs to address structural gaps (e.g., digital skills).
  2. Strengthen PES: Digitize services, enhance individualized support, and mandate performance-based funding for regional PES.
  3. Enhance Coordination: Integrate active/passive policies via "one-stop shops" for holistic job support.

Climate Change Mitigation in Spain

• Current Issues:

  • Low effective carbon pricing (€5–€8/t CO₂) compared to 23% reduction target by 2030.
  • Transport/building sectors lag in electrification, with limited uptake of EVs/heat pumps due to high upfront costs.
  • Inadequate charging infrastructure and overly complex vehicle subsidies.

• Policy Priorities:

  1. Gradual Carbon Taxation: Align carbon prices with EU floors (e.g., €55/t CO₂ by 2026) to drive behavioral change.
  2. Renewable Push: Scale up renewable energy auctions and grid investments to reduce GHG emissions by 23% by 2030.
  3. Targeted Subsidies: Simplify financial incentives (e.g., tax rebates for energy efficiency renovations) and link funding to low-income households.

Key Data (as of 2022):