According to international news love Spanks government has reached the Agreement to raise retirement pensions
MADRID (Reuters) - Spain’s government has
reached a preliminary deal to raise retirement
pensions in line with inflation, suggesting its
new Socialist leaders may take a less
restrictive approach to spending after years of
austerity under their predecessors.
The multi-party commission that controls
social spending had agreed to the raise,
though full details were still to be decided, the
Socialist party said in a tweet late on Tuesday.
“Now the right must allow that all pensions
rise with inflation, also in times of crisis,” it
said.
Since 2014, retirement pensions have risen by
a below-inflation 0.25 percent per year.
Consumer prices rose 2.1 percent year-on-
year in May according to data from the
National Statistics Institute on Wednesday, the
sharpest increase since April 2017.
Spain’s conservative People’s Party (PP),
forced out after six years in government in a
no-confidence vote that followed a slew of
corruption cases involving PP members, kept
a tight rein on spending to cut one of the euro
zone’s highest public deficits.
The welfare system’s backup fund was
decimated by around five years of recession
following a burst real estate bubble in 2008,
while an aging population means funds are
still being drained from public coffers faster
than they can be replenished.
Spain has around 8.7 million retirees claiming
a pension and a falling birth rate has
prompted concerns of a potential pensions
time bomb and calls for a deeper reform of
the system than that passed in 2013.
Spain cut its public deficit to just over 3
percent of economic output last year, in line
with European Commission targets, from
almost 11 percent in 2012 through unpopular
spending cuts and tax hikes.
Proponents of pension hikes argue that strong
growth since the slump ended in 2013 has
helped ease budget pressures.
Agreed raises during times of economic
downturns were still being debated as part of
the agreement, Labour Minister Magdalena
Valerio said on Wednesday.
MADRID (Reuters) - Spain’s government has
reached a preliminary deal to raise retirement
pensions in line with inflation, suggesting its
new Socialist leaders may take a less
restrictive approach to spending after years of
austerity under their predecessors.
The multi-party commission that controls
social spending had agreed to the raise,
though full details were still to be decided, the
Socialist party said in a tweet late on Tuesday.
“Now the right must allow that all pensions
rise with inflation, also in times of crisis,” it
said.
Since 2014, retirement pensions have risen by
a below-inflation 0.25 percent per year.
Consumer prices rose 2.1 percent year-on-
year in May according to data from the
National Statistics Institute on Wednesday, the
sharpest increase since April 2017.
Spain’s conservative People’s Party (PP),
forced out after six years in government in a
no-confidence vote that followed a slew of
corruption cases involving PP members, kept
a tight rein on spending to cut one of the euro
zone’s highest public deficits.
The welfare system’s backup fund was
decimated by around five years of recession
following a burst real estate bubble in 2008,
while an aging population means funds are
still being drained from public coffers faster
than they can be replenished.
Spain has around 8.7 million retirees claiming
a pension and a falling birth rate has
prompted concerns of a potential pensions
time bomb and calls for a deeper reform of
the system than that passed in 2013.
Spain cut its public deficit to just over 3
percent of economic output last year, in line
with European Commission targets, from
almost 11 percent in 2012 through unpopular
spending cuts and tax hikes.
Proponents of pension hikes argue that strong
growth since the slump ended in 2013 has
helped ease budget pressures.
Agreed raises during times of economic
downturns were still being debated as part of
the agreement, Labour Minister Magdalena
Valerio said on Wednesday.
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