EU-FLAGBRUSSELS has warned of the widespread use of temporary contracts in Spain and their negative impact on the country’s economy.

In its annual report on macroeconomic imbalances, the EU Commission said despite the country’s ‘strong’ recovery, it has not overcome the crisis’ legacy and is still facing a series of challenges.

It found that Spain has one of the highest rates of temporary contracts in the EU, adding that many of them were for very short periods.

It went on to say that these contracts often fail to act as a springboard into stable careers and are associated with poor working conditions, leading employees to be at a greater risk of poverty.

The report recognised how the latest labor reforms led to a small increase in fixed contracts, but it complained that they were not strong enough to discourage the widespread use of temporary contracts.

It added that the risk of poverty is still far too high in the country, despite a small decline in 2015.

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