Brussels is not convinced of the mechanism that will replace the sustainability factor, or the resignation of Minister Jose Luis Escriva to extend the years considered for calculating the pension from 25 to 35 years. The reform proposed by the President of Social Security does not guarantee the sustainability of the system and does not introduce the mechanisms of adjustment and Changes you make mean an account only. This is what the community authorities believe, who are pressing the pension administrator to adopt reduction measures in a system that pays ten million pensions.
The Social Security informed the Social Dialogue two weeks ago that these changes in the system must be made due to the fear that Spain will not receive the next 7,000 million that Europe must transfer from the next generation funds associated with completing the reform. of pensions. The legal amendments impose more packages after the millionaire expenses that the public treasury will spend to compensate retirees for inflation in the application of the pension law.
Some bills records
At that meeting two weeks ago, businessmen, still unaware that a baseline increase of 8.6% was coming in 2023, stated that they would not present a ‘blank check’ to the minister and pointed to the Toledo path. A charter to resolve the reform that must support a regime for which next year’s budget will allocate 200 billion for the first time in history. Only in the reassessment of pensions for retirees with CPI will the public treasury have to spend it A bill of about 20,000 million euros.
The declaration of war by employers after learning of the new increase in social security contributions complicates not only a very complicated scenario due to the depth of the reforms, but also because of the time limit in which they have to be settled: the end of a year. This is the margin agreed upon with Brussels.
“The fourth installment is in jeopardy due to the Intergenerational Equity Mechanism and the Minister now intends to ensure the viability of the pension system by charging companies the cost, with more labor taxes and access to joint corporate reserves,” a trade source tells this newspaper.
Baby boom at the gates
As the ABC has already reported, there is concern in Europe about the solvency of the pension system a few months after the first retirees of the “baby boom” generation, those born between the 1950s and late 1970s, began joining an “army” with long-contributory jobs and high salaries that qualify them for the High salaries.
Officials were in European Commission They arrived at the end of last September in Madrid to see how the reforms were progressing and to the annoyance of Escrivá they modified themIntergenerational Equality Mechanism (MEI). They don’t like it being semi-automatic and have demanded automatic pension adjustments, a “recommendation” that the government agreed to without a response.
The Minister’s refusal to extend from 25 to 35 years is also taken into account for the computed pension calculation, a measure that would save almost one point from Gross domestic product, but Escriva ruled it out because, according to his calculations, it would harm two out of three retirees in the future. Alternatives publicly identified by the pensioner, without yet being raised in the social dialogue, would be able to either exclude some of the worst years of contributions in the careers of future retirees or better address the gaps in contributions. Measures in both cases of improvement. The savings are not reflected in any of them.