With a less controversial proposal than the French proposal, Spain has approved a reform of its pension system

Amid the tense atmosphere that broke out in France the executive’s proposal Emmanuel Macron reform the retirement system, Spain he did the same but in peace and silence.

This Thursday, the left-wing government Pedro Sanchezapproved a decree reforming the retirement calculations with which “the modernization of our system and We protect the purchasing power of all current and future retirees“, assured the Minister of Social Security, Jose Luis Escriva.

The project was approved at an extraordinary meeting of the executive of the left-wing coalition and has the backing of Spain’s two main trade unions –CGU there CCOO– and the European Commission which, for a long time, required this measure in order to be able to continue the disbursement of European recovery funds economic after the coronavirus pandemic.

More specifically, the reform includes measures to increase income from the pension systemamong them, the progressive libcremento of the maximum contribution base of €4,495.50 per month in 2023 and that between 2024 and 2050, it will be updated each year according to the consumer price index increased by 1.2 percentage points.

Also, it is planned intergenerational equity mechanism with an increase in social contributions from this year, to gradually increase from 0.6% to 1.2%.

Escrivá said at the press conference that with these measures the reserve fund that guarantees pensions will reach approximately 120,000 million euros in the early 2040s, which will allow guarantee the viability of the system in a country where a large increase in pensioners is expected as baby boomers.

This fund had shrunk in recent years, remaining in a charge that represents almost the 12% of its gross domestic product -about 12,000 million euros per month-. This number covers more than nine million beneficiariesin a country of more than 47 million inhabitants and with a low birth rate – with a downward trend – which is estimated at 1.2 children per woman of childbearing age.

This decision was rejected by the Spanish employer which considers that the tax burden on employers and workers while right-wing opposition he reproaches the government for not having set about it with a view to the future.

About the retirement agethis has not been affected by the recent reform, so a person must have a minimum of 65 years to access this pension in Spain. However, the number is expected to increase to reach 67 In 2027with a minimum contribution period of 37.5 years.

This had already been delayed for two years in 2011 by the government of Socialist President José Luis Zapatero during the financial crisis that raged in the country.

Unlike the project approved by Emmanuel Macron, the Spanish reform did not provoke strong disapproval from society or lead to massive strikes and walkouts.

In this regard, Escrivá explained that this difference was due to the fact that France took too long to modify its system for the “42 privileged special regimes in terms of pensions”.

“France has a pension system that is not sustainable. He hasn’t talked about it in decades.”began by mentioning and emphasizing that at not having taken the respective measures “in time”, it must now do so through “cuts” that “generate social resistance”.

(With information from EFE and AFP)

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