• In 2020, unions ask for "a legal formula" so that pensions go up by more than 0.25% if there is no government
  • Pensions: The Government accuses the PP of squandering more than 93,000 million and depleting Social Security resources

Social Security continues to show a notable gap between expenses and income. Although the contributions are growing significantly, the commitments made by the Government with the pensioners make disbursements grow in an equally important way, and the result is that the system is still not self-sufficient. Therefore, the Minister of Labor, Magdalena Valerio, has acknowledged that " for now, there is no choice but to continue pulling loans and the Reserve Fund ."

In his first appearance as head of Labor and Social Security, just over a year ago, V allerio accused the PP Government of squandering the resources of the system and depleting the funds of the pension piggy bank . However, very soon he found the massive deficit of the system, and decided to continue to resort to the increasingly limited resources of the Reserve Fund in addition to requesting new credits from the Treasury. That is, just what the Rajoy Executive had to do and what Sanchez will continue to do, as Valerio has advanced in the press conference following the Council of Ministers held this Friday.

And it is that neither the Government nor the current one has been able to tackle the complex situation of Social Security and, in fact, the decisions they have made on pensions have caused just the opposite, that is, greater tensions for the system. Valerio, once again, has accused the former Executive or of being responsible for this situation, since he did not solve the system deficit, and has also pointed directly to Podemos.

The person in charge of Labor functions recalled that the formation led by Pablo Iglesias dynamited the agreement that the Toledo Pact was going to sign just before the general elections. This commission had to reach consensus on certain agreements, which included linking pensions to the CPI and reaching sustainability in 2025, but at the last moment we decided to dynamit them for electoral purposes .

"There is no problem of excessive spending"

In addition to not recognizing any responsibility for the Social Security deficit, Valerio has also stated that the system " does not have a problem of excessive spending ", thus responding to a report in which the European Central Bank (ECB). In this document, the agency points out that pensions represent a very high expense for most of the euro zone countries, including Spain, and that reforms need to be undertaken immediately to ensure the sustainability of the system.

"In Spain there is a problem of income, not of spending. We dedicate 12% of GDP to pensions , below the European average and other surrounding countries such as Portugal or France," said Valerio.

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  • Social Security
  • Magdalena Valerio
  • Pensions

In 2020 Trade unions ask for "a legal formula" so that pensions rise more than 0.25% if there is no government

EconomyMagdalena Valerio: "I tell my children that they will receive a pension"

Purchasing power Retired people earn twice: inflation remains at a minimum while the average pension rises at 5% rates