Last 17 November 2023, the head of Research and Social Studies at CEU-CEFAS, Gonzalo Sanz-Magallón, spoke at the European Parliament at the conference entitled “Free enterprise as a driver for job creation”, organised by Margarita de la Pisa MEP. Jorge Buxadé MEP and Rosa Guirado, lawyer and economist.

During his presentation, Sanz-Magallón defended the importance of economic freedom to promote job creation. The head of Research and Social Studies at CEU-CEFAS, analysed the different attacks that are being made on economic freedom, such as the right to property, fiscal security, the labour market and commercial freedom.

During his speech, he enunciated the effects that economic freedom is currently having. Through a study published in 2022, which analysed 500 scientific articles on whether economic freedom has a positive or negative effect, the economist explained that only 40 articles concluded that economic freedom is negative. “Economic freedom has been positive for labour markets, migration, household income, economic growth and employability,” he added. He emphasised that “this study indicates that economic freedom has been positive for the reduction of inequality“.

The relationship between freedom of enterprise and employment

The CEU San Pablo University lecturer explained that this relationship has direct effects, such as “the lack of freedom of enterprise generates less employment”, and indirect effects, where he gave the example of the introduction of the minimum wage in Spain. “Economic theory predicts a fall in the level of employment”, said Sanz-Magallón in relation to this measure. Using different graphs, the professor illustrated what has happened and concluded by stating that there has been a “reduction in employment, above all in young people from backward regions of Spain and belonging to disadvantaged groups“.

Employment is something inherent to the human being, it has a fundamental social and spiritual dimension in any person.

Gonzalo Sanz-Magallon, ead of Research and Social Studies at CEU-CEFAS

Bureaucracy in Spain

“In Spain, the quality of regulation is in a disadvantageous situation compared to other western and developed countries,” said Sanz-Magallón. He also said that this situation “is having harmful effects on economic growth and employment in countries around the world that have less favourable regulations for economic activity”.

The head of Research and Social Studies at CEU-CEFAS highlighted the importance of having a job and said that “it is something inherent to the human being, it has a fundamental social and spiritual dimension in any person”. Sanz-Magallón concluded by stating that “in Spain we have become accustomed to the fact that there are 3 million unemployed people and nothing happens“.