October 26, 2020

CEOE proposes raising the retirement age as life expectancy rises | Economy

CEOE proposes raising the retirement age as life expectancy rises | Economy

Entrepreneurs propose that, after the next general election of April 28, a new agenda of structural reforms and various state pacts will be promoted to face the great challenges that the Spanish economy will face in the future, according to the document approved today by the CEOE Board of Directors. The report raises more than a hundred proposals in twenty areas.

Among the proposals is the increase in the retirement age as life expectancy rises, reductions in Corporate Tax and corporate contributions, the abolition of Property Tax and the reduction of Inheritance Tax, "which in the current situation reaches confiscatory levels in some autonomous communities ".

The Confederation has identified four major risks: political instability, lack of budgetary discipline, the abandonment of the process of structural reforms and the breakdown of the market unit. According to the businessmen, if these risks materialize, "the deceleration trend that the Spanish economy has initiated could be accelerated." They also highlight that "the new government has the ability to reduce, and even eliminate, these internal risks and reverse the slowdown ".

Faced with these four risks, it proposes four main lines of action, which include all its proposals: guarantee political and institutional stability; intensify the process of fiscal consolidation; continue the process of structural reforms, and bet on the unity of the market.

In this sense, the employers stress that "political stability is equivalent to credibility and legal security and a necessary condition for maintaining and even improving the confidence of citizens, companies and investors in our country." According to the businessmen, "business activity benefits when the political climate is characterized by moderation and encounter, as a basis for the sustainability of the institutions that shape our market economy: freedom of business and property rights".

Structural reforms

The CEOE considers that it is necessary to "continue the process of structural reforms" by carrying out an economic policy that solves problems such as low potential growth due to the high unemployment rate; the difficulty in reducing the deficit despite the high rates of activity and employment; the population aging; low productivity, or high external debt.

The document explains that "the only time in which structural reforms are often undertaken is at the beginning of a legislature, without prejudice to its favorable effects being maintained over time." For this reason, businessmen believe that we must "look ahead and not reverse the reforms that have been key to prop up the economic dynamics and the confidence of our agents".

In Social Security, it proposes to review its financing, "separating what is contributory from what is not so that the first is financed with the contributions of employers and workers and secondly through the State". "This would allow," he adds, "a reduction in the type of contribution charged to the employer." In this sense, he complains that the social security contributions to the Social Security are "considerably higher" than the European average and imply a tax on employment and the competitiveness of companies, so he urges them to reduce them.

It also calls for an efficient and effective management of benefits, especially temporary disability derived from common illness, and the implementation of simultaneous reforms in the system "on several fronts", such as the fight against fraud in the contributions and the increase of retirement age as life expectancy does. Likewise, it is committed to reforming the regulatory framework of complementary social security, facilitating fiscal incentives and greater transparency and availability, and calls for improving mechanisms for monitoring, control and evaluation of work absenteeism.

Infrastructure Plan

On the reduction of the public deficit, the document explains that it is necessary to continue betting on the structural consolidation of the deficit, but based on those items with less impact on the productive supply and business competitiveness. That is, acting on current spending and avoiding tax increases. In fact, the report raises a reduction in taxes with greater impact on business costs.

The business confederation also maintains its commitment to market unity and states that "we must bet on strengthening our commitment to the Economic and Monetary Union, the constitutional framework and the territorial integrity of Spain." "It is essential to institutionally strengthen the market unit to guarantee our citizens and companies the possibility of operating with the same requirements regardless of where they are located in Spain," the document explains.

On the other hand, it considers necessary an investment of 114,000 million euros in the construction of all types of infrastructures, including transport, logistics, environmental and water. In addition, it considers it necessary to reverse the current situation, in which Spain is "in the tail" of the EU in terms of investment in infrastructure per capita, since this area "supported" almost half (48%) of the reduction of public spending in the crisis and calls for a New Infrastructure Plan that includes the endowments considered "priority", has the "essential" participation of the business sector and also with European funds.


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