July 24, 2021

the rise in pensions is immovable

the rise in pensions is immovable


NAdie in the Government seems to have clear what formula to use to calculate the revaluation of pensions, judging by the cascade of contradictory statements that come in recent months from the Executive and the PSOE. The contradictions have intensified these days, after the Toledo Pact Commission agreed to re-link the evolution of benefits to inflation. Yesterday, the Minister of Labor, Migration and Social Security, Magdalena Valerio, reaffirmed the Government's commitment to raise pensions according to the Consumer Price Index (CPI), and said that this promise is "unbreakable," he said in the Commission of Work of the Senate.

Just 24 hours before, the Minister of Economy, Nadia Calviño, said that in terms of pensions can not be attended to the evolution of prices, but that their sustainability should be analyzed taking into account a number of variables. "On the specific issue of pensions, I have always said, and it is the position of the Government, that this is a matter in which we can not only look at one parameter, such as the updating of pensions to the CPI", said the minister at the press conference after the meeting of the Economy and Finance ministers of the European Union. For Calviño, it is also necessary to consider the demographic variables, employment, salary level or the number of years of contribution.

These contradictions regarding pensions have been frequent in the speech of the Government of Pedro Sánchez. In this sense, only a few hours before the agreement in the Toledo Pact the Secretary of State for Social Security, Octavio Granado, defended maintaining the purchasing power of pensioners but with more variables than the CPI, a position similar to that of the Ministry of Economy . In fact, Granado was not present yesterday at the appearance of the Minister of Labor, who presented a view contrary to that of the Secretary of State. On the other hand, the Secretaries of State for Employment and Migration were, reports Efe. "Real CPI and if there is a deviation with the expected CPI, there will be a compensatory payment to pay that difference. That is the will and I do not know that the Secretary of State has used any other variable, "said Valerio. The minister also denied that there are discrepancies with Calviño regarding this revaluation and explained that when the Minister of Economy referred to "other parameters" he did not talk about updating the pension but about new measures to guarantee the sustainability of the system and its financing .

In any case, the introduction of more variables to calculate the revaluation of pensions is a novelty in the discourse that the Socialist Party has maintained during 2018. In fact, last February presented a bill in the Congress of Deputies to update the benefits according to the IPC. In April, the training presented its alternative to the General Budgets of the State of Rajoy, where it ensured that measures should be put in place immediately to "guarantee the current level of pensions in terms of its annual revaluation with the inflation index". Already in La Moncloa, Pedro Sánchez said in July in Congress that recovering the indexation to the IPC was a "red line" of his Government.

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