Bargaining reform inches by in Congress

The ruling Socialists were saved at the final hour from further political turmoil when the Basque Nationalist Party (PNV) and the Catalan nationalist (CiU) bloc made a U-turn and decided to abstain on a vote over the government's controversial collective-bargaining and wage reforms.

The decreed reform, which was approved on June 10 by Prime Minister José Luis Rodríguez Zapatero, now becomes a bill that will allow lawmakers to make necessary amendments. Both the PNV and CiU abstained from the voting at the very last minute, allowing the Socialists to get the decree passed with 169 votes. The 159 Popular Party (PP) lawmakers voted against it. In all, there were 20 abstentions.

Among the clauses in the bill is one that gives individual company bosses more flexibility in negotiating salaries with the unions. Wage deals are normally struck among an entire industrial sector or geographical area, making it difficult for individual businesses in financial difficulties.

Meanwhile, thousands of protestors gathered outside Congress on Wednesday to protest against the government's wage-reform proposals.

Aside from the controversial vote, during the Congress session the PP's economic spokesman Cristóbal Montoro launched a fierce attack against the government, claiming that "Spain is a hindrance to the euro thanks to Zapatero."

Alfredo Pérez Rubalcaba then had to respond to criticism from the opposition party over his position as deputy prime minister and the Socialist party candidate for prime minister next year, saying that the two roles were compatible.