• Pensions to the CPI. Pensioners demand a mortgage of 327,000 million for Social Security and Sanchez grants it
  • Demonstration. And Congress (again) surrounded itself with pensioners: "We do not accept 0.9% of Sánchez, only the real CPI"

The Government will go back to the Social Security Reserve Fund to be able to pay the extra pension payment and, in particular, will use 3.5 billion euros, so that in the piggy bank there will be only 1.5 billion more . This has been confirmed by the Minister of Labor, Magdalena Valerio, who at her first appearance in the Congress of Deputies as responsible for the Ministry accused the Government of the Popular Party of squandering Social Security resources. And, without a doubt, the previous Executive went very intensely to the Fund, but the current Socialist Government has done exactly the same .

The need to go back to the Fund and leave it practically without resources, shows that the contributions are still not sufficient to meet the disbursement required by the payment of pensions. To try to reduce the withdrawals of the piggy bank , first the popular Executive and the Socialist then have been articulating loans to Social Security. But even so, and counting the withdrawal that Valerio has advanced today in an interview with Efe, the piggy bank will be almost liquidated after having accumulated more than 66,000 million in 2011 .

More pressure for the system

Valerio’s confirmation also comes a day after about 8,000 pensioners collapsed in the center of Madrid demanding a further increase in pensions and that the acting president, Pedro Sánchez, accepted the demands of the protesters .

Specifically, the pensioners demanded that the pensions be linked to the real CPI, a term coined by the Government itself and that they are now turned against it since there is no more CPI than one and the 0.9% increase already promised by Sanchez fits precisely that. However, and aware of the weight they will have in the next elections, Sanchez hastened to accept the demands of the pensioners without explaining how he will face the huge expense of this commitment. Fedea, for example, estimates that linking pensions indefinitely to inflation would mean an accumulated expenditure of 327,000 million over the lifetime of the beneficiaries. For his part, Enrique Devesa, one of the largest experts in pensions in Spain, estimates that only the 0.9% increase already closed by 2020 will mean an accumulated disbursement of 10,000 million.

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  • Social Security
  • Magdalena Valerio
  • Pensions

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