Garamendi Criticizes Sánchez Over Business Attacks & Wage Policies

Spanish Business Leader Accuses Government of Seeking Scapegoats Amid Wage Debate

Antonio Garamendi, president of the Spanish Confederation of Employers’ Organizations (CEOE), has sharply criticized the government of Prime Minister Pedro Sánchez, accusing it of seeking “enemies” to deflect from its own economic policies. The comments came in response to criticism leveled by Sánchez against the CEOE for not supporting an increase to the minimum interprofessional wage (SMI).

“I don’t believe it,” Garamendi said in an interview with the Cope radio station on Tuesday, February 17, 2026. “here we have to keep looking for enemies, to cover up, I don’t know, some misery.”

Garamendi argued that the government appears to focus solely on large corporations – specifically those listed on the Ibex 35 stock index – while overlooking the more than two million small and medium-sized enterprises (SMEs) that form the backbone of the Spanish economy. He claimed Sánchez’s criticism was directed “justly against the people who create wealth.”

The CEOE president further contended that wage increases are unsustainable given the government’s own policies. “The big drama is that wages cannot be raised because the government is turning purple, and I say it clearly, to raise taxes from the point of view of social security contributions,” he stated. “the government gets it all, because if not, it would be in the workers’ pockets.”

Garamendi also expressed frustration over what he described as a labor shortage, stating that 1.7 million people are absent from work each day in Spain. He contrasted this with what he characterized as the government’s focus on issuing work permits and other measures, suggesting a disconnect between policy and reality. “I am more than furious about this situation,” he said.

He accused the government of failing to support small businesses and self-employed individuals, claiming they are instead burdened by excessive taxation. “They are looking for enemies, they are looking for stereotypes, when this has nothing to do with it,” Garamendi asserted. “Here we have to talk about productivity, we have to talk about the competitiveness of companies, we have to talk about how companies have to grow, but, however, they don’t want them to grow because they strangle them with taxes. We are at a record level of collection and yet they don’t want to talk about what really needs to be discussed.”

Garamendi lamented that the CEOE and business leaders have become “the punching bag” for the government, despite historically being “the solution.” He insisted that businesses remain committed to driving economic growth and creating wealth.

The criticism from Garamendi comes amid ongoing negotiations between unions and employers regarding wage increases. Unions have reportedly proposed a 13.8% wage increase over the period 2022-2024, a figure described by executive sources as “brutal.” The government has also been considering further increases to the SMI, raising concerns among business leaders about the impact on labor costs and competitiveness.

According to a report from Social Bites, regulatory stability is a key concern for business leaders in Spain. Garamendi has previously urged for legal certainty, promising to work toward social peace. However, he has also faced criticism for appearing distant on these issues within the CEOE organization.

In a separate statement reported by Cantabria Press, Garamendi described a recent agreement between Sánchez and Yolanda Díaz to reduce working hours and increase the SMI as “pure populism,” claiming those involved “have never seen a company in their life.”

The escalating rhetoric between the government and business leaders underscores the challenges facing Spain as it seeks to balance economic growth with social demands. The outcome of wage negotiations and the government’s future economic policies will likely have significant implications for the country’s business climate and labor market.