Resumen: In this paper we will describe the role of passive labour market policies in unemployment in Germany and Spain since the beginning of this century. The structure of this report starts with a description of the unemployment situation and labour market characteristics of Germany and Spain during the last two decades followed by an explanation of the labour reforms carried out throughout that period. The second part is a detailed description of what passive labour market policies are as well as how they work in each country. Subsequently, we will analyze the public spending in terms of passive labour market policies taking into account the quantity and number of recipients of these aids.