Prime Minister Pedro Sanchez is taking a major gamble. If it works it will ensure Spain’s economic miracle; if it fails, then he is in big trouble.
Sanchez has announced plans to legalise the situation of 500,000 illegal immigrants. At the moment they are living in Spain illegally but they have been given the option of paperwork as part of an amnesty period. It will mean that an estimated half a million people will be legally joining the labour market and paying their taxes.
If all these people find jobs then the economy will continue to grow. The problem is that the Iran crisis has hit world economies hard and even Spain is feeling the pinch. If unemployment rises then Sanchez will have a big problem trying to explain why he allowed 500,000 more people to join the labour market. Fewer jobs, fewer people.
Spain at the moment has a major labour shortage and this is one of the reasons why the country has turned to immigrant workers. But remember Spain has a historic unemployment problem with one of the highest rates in the European Union. While the theory is good in practice it all depends on the economy growing and new jobs being created. If they are not then it will be back to the drawing board.