Two great weights of the coalition government have come out this Thursday to respond to the criticisms of the governor of the Bank of Spain for the increase in pensions and the salary of public employees in 2021. The economic vice president, Nadia Calviño, has affirmed that ” It is surprising that someone can question the increase in pensions “so that the group does not lose purchasing power, as the Toledo Pact has agreed, in an interview in Espejo Público. For his part, the Minister of Inclusion, Social Security and Migration, has criticized that the head of the banking regulator just attacks these items: “Spain’s fiscal or public deficit problem is not precisely in the salaries of officials.”
The 0.9% increase in pensions, 1.8% of the minimum vital income, 25,012 million for unemployment and other labor items of the Budgets
Both heads of the government’s economic area have reacted like this the criticisms of the governor of the Bank of Spain in the Budget committee of the Congress of Deputies on the 0.9% increases in pensions and salaries of public employees in the draft General State Budget for 2021. Pablo Hernández de Cos argued that he did not consider these increases adequate in a context of “fragility of the economy” such as the current one and, specifically, on the rise in salaries of civil servants, he advocated that they will focus only on certain groups, such as “health personnel.”
“I am surprised that someone could question the rise in pensions,” said Vice President Calviño, who has also justified the general salary increase for public employees: “It is not only about the health group, we are also talking about the police, the Army, of all officials who are allowing pensions, social benefits, etc. to be paid. ”
Calviño recalled that the maintenance of purchasing power also has a function of “sustaining the income of society as a whole and, therefore, the ability to recover consumption and activity in the coming months”, in a statement published can be consulted in the following tweet.
Minister José Luis Escrivá, formerly head of AIReF and with a long career in economic analysis in the private sector and international organizations, has highlighted that in his opinion the “most interesting” assessments of the governor of the Bank of Spain should be those that They concern its powers, such as what it thinks of monetary policy, what the European Central Bank will do, what is the agency’s macroprudential policy, what will happen to the banks in this crisis and what are its inflation forecasts, among others, has explained at an informative breakfast organized by Europa Press.
Even so, he has affirmed that Hernández de Cos “has every right to speak” and comment on these two increases in the Budgets, which the Minister of Social Security considers “absolutely legitimate.” José Luis Escrivá has stressed that at this time it is essential to transmit “certainty” to the population and “maintaining purchasing power” is a way to do so, which “does not call into question” crucial medium-term issues such as fiscal consolidation in Spain.
The minister recalled that Spain has had a fiscal and public deficit problem for years, which will aggravate the pandemic, but has criticized that it specifically attacks these items that affect public employees and pensioners in the 2021 Budgets. ” Spain’s fiscal or public deficit problem is not precisely in the salaries of civil servants, nor in chapter one of the Budgets “, Escrivá has settled.