The Government tries to shield the rise of pensions with the CPI before the elections | Economy

The Government tries to shield the rise of pensions with the CPI before the elections | Economy



It is still unclear if the Toledo Pact will conclude its recommendations before the end of the legislature. However, the Government intends to take advantage, at least, the only one closed and presented in public to shield and update pensions "based on the real CPI". The global agreement is almost done, but the proximity of the elections may prevent it from closing soon. Given this scenario, Ministry of Labor sources point out that if the general agreement is not reached quickly, they will try to save this part through a decree law.

In 2018 and 2019, the purchasing power of pensions is assured. For both years it is guaranteed by its link with the average CPI of each year, from 2020 onwards. The decree with which this exercise was revalued committed a definitive solution in the first six months of this year, but the general election call hinders this horizon.

The appointment with the polls on April 28 (and May 26) is also putting at risk the closure of a definitive agreement in the Toledo Pact. Almost all the spokesmen of this parliamentary commission, coincided yesterday in admitting that the texts on the more than 20 recommendations that should serve as a guide to social dialogue and the current government to prepare the next reform of Social Security "are very mature and worked " In which there is not so much coincidence, it is in the imminence of the definitive text. Some believe that it could be closed this week; others – after more than three years of talks – it takes more time, which means delaying it until after the electoral cycle.

"There is an agreement there," said the Minister of Labor, Magdalena Valerio, in an interview on Telecinco, in reference to the Toledo Pact. He added that with that they do not point out that "big reforms" had to be done, rather it would be "giving it a little push". Subsequently, sources of work specified that it referred to the recommendation on the maintenance of purchasing power, already closed and published in September.

Among the advances in the rest of the councils of the Pact of Toledo, the obligation to close the Social Security deficit in 2025 with more contributions of resources from taxes, as advanced yesterday Five days. In addition, the same recommendation calls for a study "that reflects to what extent the social contributions assumed for years the weight of the financing of other policies of the State".

The requirement is not innocent. This calculation quantifies how contributions have financed health throughout history, the complement of pensions that do not reach the minimum or active employment policies. With it, it can be justified to leave the debt that the Social Security has with the State to zero for the loans of the last years or those contributions that the Public Treasury will have to make to close the pension deficit.

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