Spain’s Pension Reform Talks Continue Between PSOE and United We Can
The Socialist Party and United We Can are moving closer to a pension reform framework designed to safeguard the system while steadying the final stretch of changes. Despite ongoing tensions within the coalition over several issues, including the controversial yes is yes law, both parties have bridged the most difficult gaps that had blocked progress in recent months.
At the core of the debate is how many years of earnings should count when calculating future pensions. The finance minister laid out a dual-path proposal. One option preserves the current approach, using the last 25 years of a worker’s career. The second option broadens the window to 29 years, but with the lowest two earning years excluded. Critics say extending the calculation period could hit workers with unstable career paths the hardest, while those who finish with higher salaries might receive comparatively more favorable treatment. While the plan would raise overall Social Security spending, the minister cited backing from the European Commission as a sign of legitimacy for the direction.
In a public statement, a Unidas Podemos representative noted that an agreement has been reached to protect pensions and bolster the redistributive aspect of the system. The approach seeks to increase contributions from higher earners while shielding the most modest pensions from cuts.
The minister’s first proposal encountered significant resistance from coalition partners who previously indicated they would not support measures that could be perceived as reducing benefits. Their position left open the option of keeping the current 25-year period, ensuring there would be no future coalition that could claim a pension cut had been enacted.
As tensions within the alliance persisted, negotiators pressed forward and parliamentary support began to solidify. With this rising momentum, the minister and the trade unions prepared for additional discussions on the reform. Once Unidas Podemos affirmed its stance, unions appeared closer to backing a favorable vote, framing the government’s plan as a way to increase Social Security revenue without diminishing benefits.
Industry observers expect employers, especially large companies, to resist the reform. They argue that higher pension costs could translate into increased business expenses, potentially affecting employment and the viability of small firms and self-employed workers. Analysts highlight the political risk for the administration as it tries to balance fiscal sustainability with the long-term protection of workers’ benefits. These assessments underscore the delicate trade-offs involved in overhauling a pension system that impacts millions of Spaniards and has long dominated public policy debates. (Source: Spanish press commentary)