The Blubber

In a move likely to stir debate over Mediterranean lifestyle stereotypes, Spain’s government has approved plans to shorten the workweek, reducing the cap on working hours from 40 to 37.5 starting next year, pending parliamentary approval.

The initiative, framed as a victory for work-life balance, has already sparked strong reactions. Business leaders were so outraged that they walked out of negotiations on the matter. Deputy Prime Minister and Labor Minister Yolanda Díaz described it as a groundbreaking step.

“This isn’t just another economic or labor policy,” Díaz told reporters. “It’s a national project, a measure that will modernize Spain.”

The proposal is drawing comparisons to France’s controversial decision to introduce a 35-hour workweek at the start of the 2000s, which became a divisive issue for years. Spain may be setting itself up for a similar debate over how far employers can push staff in an increasingly globalized economy.

The agreement was reached between the government and unions after business groups abandoned the talks.

CEOE, Spain’s main business lobby, has been highly critical of the plan, while the small business association Cepyme warned it would have serious consequences.

“This, combined with last week’s minimum wage hike, will hurt small and medium-sized businesses, limiting profitability, reducing investment capacity, and adding unnecessary rigidity to corporate planning,” Cepyme said in a statement.

Unions estimate the new regulation will affect 13 million workers. Some public-sector employees and professions like education already have a 37.5-hour workweek.

Eurostat data shows that the average actual weekly hours worked in Spain is 36.4 — higher than the euro area average.

“This will have a significant impact on businesses of all sizes,” said Blanca Mercado, a labor lawyer at KPMG Abogados. “The goal is to improve family-work balance and boost productivity.”