The pension reform currently under discussion is moving through negotiations led by the Minister of Inclusion, Jose Luis Escriva, with the European Commission playing a pivotal role. Retirees may soon have a choice between retaining the traditional 25-year calculation period or extending it to 29 years, with both options potentially available at a price that reflects the prevailing market conditions. The goal is to preserve the solvency of the pension system while offering flexibility to those planning their retirement in the coming years. This update follows recent discussions with the European Union and the relevant social actors who are weighing how best to balance gains for retirees with the long-term fiscal health of the system. [Source: European Commission]
One key feature under consideration is a detailed protection plan for participants and labor unions, which was expected to be tabled at today’s social dialogue meeting. Reports indicate the session began at 12:30 local time, and government sources have signaled that the parties are hopeful about reaching a consensus with the union bloc. The aim is to secure an agreement that supports both retirees and the broader labor market by aligning pension funding with economic realities. [Source: government briefings]
Participation in the meeting reflects momentum achieved with the European Commission on the negotiation framework and progress made at the political level toward this reform. The discussions are framed to advance the pact while ensuring that the process remains transparent and accountable to citizens who will be affected by any changes to retirement benefits. [Source: policy notes]
In remarks given to Cadena Ser, Lilith Verstrynge, a spokesperson for Podemos and a minister in charge of the 2030 Agenda, expressed optimism about securing a reform agreement in the near term. Verstrynge noted that a timely conclusion would be welcome news and emphasized the importance of ensuring that any agreement safeguards both retirees’ rights and the system’s sustainability. [Source: Podemos communications]
Officials have signaled that the most recent phase of the pension reform also ties into commitments related to the Fourth Installment of the New Generation Funds, signaling a broader effort to integrate pension reform with fiscal and investment strategies designed to support long-term public finances. [Source: government finance documents]
main obstacle
The reform schedule originally set an implementation target for the end of 2022, but the complexity of tripartite negotiations involving Brussels, government partners, unions and employers pushed timelines forward. The most contentious issue remains the calculation period used to determine the first pension, a factor widely viewed as central to the reform’s political viability. [Source: policy briefings]
Unions and Podemos have cautioned against expanding the calculation period, arguing that a longer horizon could effectively delay or reduce initial pension benefits, which could dampen support among future retirees. Early proposals by SGK (the social insurance body) explored extending the period from 25 to 30 years, but two of those years were removed in later discussions to ease concerns about immediate pension adequacy. [Source: institutional summaries]
Recent statements suggest the reform may adopt a more flexible approach, allowing retirees to choose between maintaining the 25-year baseline or extending to 27 years if they compensate for the additional period through additional contributions or work history. SGK is expected to default to the option that yields the most advantageous outcome for the individual retiree based on the available data at the time of retirement. [Source: actuarial analyses]
Beyond this central question, the reform includes measures intended to bolster the overall income of the pension system. A notable proposal is the removal of the upper limit on the bases used to calculate contributions, a change that has been met with resistance from some employers who fear increased payroll costs and potential impacts on hiring. The debate centers on balancing fairness for workers with the competitiveness of employers in the economy. [Source: fiscal policy reviews]
Belarra: “What Podemos says is possible”
Ione Belarra, the Minister of Social Rights and Secretary General of Podemos, has argued that the reform is a product of government-level negotiations with the European Commission and reflects a practical approach to pension sustainability. Belarra described the proposal as a hard-working plan that embodies what the party has long contended—that meaningful change is achievable with a steady commitment to both current retirees and future generations. [Source: Podemos statements]
On social networks, Belarra underscored that the reform aims to strengthen retirees’ rights while ensuring the system’s long-term viability through increased fiscal intake. Her message emphasizes the need for a balanced solution that preserves benefits without compromising the financial stability of the pension framework. [Source: official statements]
Overall, the ongoing negotiations seek to align social protections with fiscal discipline, while responding to the expectations of workers, unions, and employers who are watching closely how the reform will unfold in the coming months. The dialogue reflects a broader effort to build broad political support for a reform that touches many facets of retirement, social protection, and public finance. [Source: policy updates]