Editor’s note: This article was first published in October 2011. It reports that Esperanza Aguirre’s regional government was preparing the rule on shop opening hours; Madrid did liberalize opening hours around 2012.
Esperanza Aguirre‘s regional government in Madrid is preparing a rule that would allow premises of up to 750 square metres to open every day of the year, with no restrictions on opening hours. The measure is intended to fight the crisis at a delicate moment for consumer spending in Spain.
The measure, which would initially be approved in Madrid, would set the course for the rest of Spain, since full deregulation of trading is something both the IMF and the OECD have been asking Spain to do for years. At first glance, it could help revive the economy and create new jobs, although not every shopkeeper sees it that way: some think that, if it goes ahead, small entrepreneurs could be swallowed up by the big players.
What the experts say
The rule will generate more sales and more jobs, even for small shops, which could make much better use of tourism and considerably increase their sales on public holidays. Economists and analysts believe the measure could raise GDP by almost 200 million and create more than 4,000 jobs.
They also point out that being free to open longer hours and more days doesn’t mean having to do so, although it’s true that once the measure is adopted, business owners will feel obliged to, for fear of being overtaken by their competitors.
Then there’s another kind of shop: family businesses, run by the family itself with no hired staff. For some of these businesses, hiring someone to bring in extra income won’t pay off, because it would translate into losses, so they would end up covering those extra hours and days themselves, at the cost of their quality of life.
What people on the street say
People on the street have also given their opinion, which is broadly in favour of free trading hours. Of course, some have pointed out that this is Spain, and that an “exploitation” effect could kick in: covering the extra opening hours with the existing workforce. Not only would business owners lose quality of life, but workers could also end up without their Sundays off.
Some small business owners believe the measure could benefit certain types of business while hurting 90% of the rest, mostly family businesses or those with fewer than 5 employees on the payroll.
As we can see, freeing up trading hours could be a good alternative for some and not such a good one for others, so it remains an open debate.
Featured image: Luis García, CC BY-SA 3.0, via Wikimedia Commons.
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