#Retirement: models and alternatives

Most likely today, Thursday, a cabinet will meet to approve by decree the full reform of the pension system, which will be sent to Brussels, after the European Commission approves the main proposals contained therein. Positive negotiations took place between the PSOE and the UP, and between the government and the main minorities investing, including Bildu and the ERC. The approval of the project by Congress within 30 days will enable the fourth payment of Next Generation funds, with which Spain will practically fulfill the conditions imposed by the EU for the distribution of resources for flying after the severe health crisis of COVID. .

The reform was necessary to finance the sustainability of the model. And the biggest hurdle faced by the industry minister Escrivá in his negotiations was the Commission’s request to increase the pension calculation period from 25 to 30 years, which was not accepted by the UP. This is a sensitive issue that interferes with your social competencies in government. Finally, Brussels adopted a dual interim formula: the maturity would be 25 years or 28 years, with the most unfavorable reduction of 24 months. Brussels’ philanthropy was frustrated by the strict wing of the PP, whose Aznar-led FAES foundation considered the Executive’s proposal to “put new taxes on employment” and “punish top salaries” as “absurd”; In addition, he criticized the role of the European Commission in these and other reforms supported by the Spanish Government, and questioned the “impeded impetuosity” of a “pseudo-democratic” entity, which he demanded to clarify the “objectives pursued”. reform of this draft. The indescribable reaction of the “moderates”.

The FAES’ tantrums accompany businessmen who do not take kindly to reform, which appears to be troublesome for them. The Toledo Pact at the time adopted the criterion of preserving the purchasing power of retirees, which is equivalent to indexing pensions to the CPI, which requires updating social contributions in the same way if they are intended to achieve the sustainability that the Commission demands of us, of course.

Addition, the Minister for Social Security and Immigration took the path to gradually uncover contribution bases and also to establish a solidarity tax that would serve to feed the Reserve Fund which Rajoy liquidated during his tenure. Previously, most non-contributory benefits were credited to the PGE. And the new project includes a gradual increase in minimum pensions, which are still very low due to an obvious principle of equity.

It is clear that employers will bear a heavier burden, and so their frustrations are understandable. But what makes sense for the PP supporting them would be to offer its own option in this regard: what plans does Núñez Feijóo have if he arrives in La Moncloa? His direct predecessor, Mariano Rajoy, bequeathed us a pension reform where benefits increased by “at least” 0.25% per year, exceeding that amount only when the system recorded a surplus; from their interests.

What employers wanted to say was not clearly heard (we only heard stammering in this direction, but it would be appropriate to speak clearly once and for all): According to them, increasing pensions by 8% is absurd, and having changed the system in this way I wish this generosity to be sustainable. The right wing prefers Rajoy’s cowardice to the stern stance of those who think it’s fraudulent (we think so) to allow retirees to worsen their quality of life year after year.

It is a pity that the PP and PSOE are incapable of understanding each other on this issue and that the founding good intentions of the Toledo Pact are frustrated, but the complete blockade of the judiciary by the PP is also absurd. a permanent attack on constitutional loyalty, aimed at peaceful negotiation between enemies as if nothing had happened.

Source: Informacion


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