Ministers divided on how to deal with labor reforms

The Finance and Economy ministers are reportedly split over the fine details of Prime Minister Mariano Rajoy's ambitious labor reform package.

Cristóbal Montoro and Luis de Guindos appear to be on opposite sides when it comes to drafting the legislation, including over ideas on whether the government should send it to Congress for debate as a law or pass it by decree.

The discrepancies are so great that, according to sources, the Cabinet on Friday didn't even discuss an update report on labor reform, as expected.

Besides finance chief Montoro on one side, and Economy Minister De Guindos on the other, the internal battle is also creating another front. Labor Minister Fátima Báñez, who on Tuesday will appear before Congress, is insisting that she wants a reform package that has the support of the unions - a similar position to that of Montoro. But at the same time, De Guindos, whose vision is more in gear with that of the EU, wants reforms that will calm the markets. He also wants to act as the middleman between the government and the unions.

Whatever the case, the reform package is sure to be broader than expected, with more options for business owners to decide on salaries and work conditions.

From there, according to sources, everything is on the table for discussion.