Escrivá says that it is necessary to avoid that spending on pensions of the ‘baby boomers’ falls on young people


The Minister of Inclusion, Social Security and Migrations, José Luis Escrivá, has referred this Monday to his controversial statements that the ‘baby boomers’ will suffer a “moderate adjustment” of their pension or will have to work longer with the new mechanism of intergenerational equity to be negotiated by the Government, unions and employers.


Minister Escrivá anticipates that the 'baby boomers' could suffer a "small adjustment" in his pension

Minister Escrivá anticipates that the ‘baby boomers’ could suffer a “small adjustment” in their pension

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“The effort cannot fall on young people. We have to find together how to avoid it and, following the same model that a year ago it seemed difficult to reach an agreement on early and delayed retirements, I am convinced that we will agree. There are different ways. to do so “, added the minister.

Escrivá, in statements to La Sexta collected by Europa Press, has insisted that “he did not express himself well” and that it was inappropriate, since the day he made those reflections was the day the pension agreement reached with the social agents was signed. “It was the day to value the agreement,” he acknowledged.

The minister explained that it is not a matter of the ‘baby boomers’ receiving less pension or working longer, but rather that today’s young people, the children of that generation, do not bear the higher pension expenses that the arrival of their parents will entail. at retirement age.

That of young people, Escrivá explained, is a smaller and “narrower” generation than that of the ‘baby boomers’ and that also suffers from “a lot of job insecurity.” “We have to internalize that they cannot bear certain costs and I am not referring only to pensions, but to all public policies. We must protect young people,” he indicated.

Thus, just as the gender component has been incorporated into the design of public policies, the minister believes that this youth component should be introduced in the preparation of public policies.

In any case, he has pointed out that the measures agreed to in the social agreement are “substantive enough” so that “it is not necessary or necessary” to apply the intergenerational equity mechanism that will replace the sustainability factor. “In case we had to think about something else or not, we must have a frame of reference, so we have to agree on it,” he pointed out.

For Escrivá, this mechanism “is not the most important thing” of the agreement with the social agents, since the most important thing is that the pensions will be updated with the CPI and that the effective retirement age will be delayed thanks to a good scheme of incentives. “With a good incentive scheme we can get people to work longer, and that is the most powerful element for the sustainability of the system,” he added.

Thus, “within the aggregate package”, the intergenerational equity mechanism “is a minor and perfectly manageable issue,” insisted the minister, who recalled that the agreement reached with the social agents moves within the parameters of the recommendations of the Toledo Pact.

Intergenerational equity mechanism

The general secretary of the UGT, Pepe Álvarez, has affirmed that the negotiation of the intergenerational equity mechanism, which will replace the sustainability factor, will begin to be negotiated “surely” during this same month of July. At a breakfast at the Nueva Economía Forum, Álvarez pointed out that the pension agreement signed last week “is sustainable and viable.”

“I regret that we have to be talking about this and not the agreement,” he said, after noting that in the negotiation that is going to be opened, he will have the opportunity to talk about everything that has to do with the financial balance of the Social Security.

From his point of view, “it is a fallacy to open a debate that has ended with the signing of the agreement in Moncloa.” “It is closed because the key and fundamental element is that, for the first time, the State is going to pay Social Security those expenses that are not its own,” he added.

“Social Security has to make some adjustments, especially from the perspective of the stoppage. If we talk so much about Europe and how European systems are maintained, we are the country of the European Union that has the lowest ceiling, but with a huge difference “, has said.

On the other hand, he stressed that the fundamental element to see the viability of the system is whether it is spent around what is produced. “Spain is at 10% of GDP, assuming that everything goes as some studies suggest, we will be at 13% or 14% of GDP, which is acceptable and therefore viable,” he said.

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