February 28, 2021

There is a willingness to revalue pensions according to the CPI as of 2020

There is a willingness to revalue pensions according to the CPI as of 2020



The Minister of Labor, Migration and Social Security, Magdalena Valerio, said that there is "political will to maintain from 2020 the" revaluation "of pensions according to the CPI as of 2020.

In an interview published today by the newspaper La Voz de Galicia, the minister expresses this intention days after the agreement of the Toledo Pact to revalue pensions according to the evolution of prices next year.

According to the head of Labor, on pensions we must talk about both revaluation and financing.

In the area of ​​contributory pensions, Valerio argues that one possibility to improve funding is to launch the article of the General Law of Social Security that opens the door to finance benefits, in addition to quotes, through the Budgets "for specific situations".

The minister stresses that pension spending in Spain is below 12% of GDP, below other European countries, such as Portugal, France and Italy.

And he replies that "for now" he does not contemplate prolonging the retirement age, since the law of 2011 – which extended it to 67 years – has not yet finished "unfolding its effects".

In addition, he affirms that if to pay the extra this year it is necessary to touch "a little bit" the reserve fund "will be touched".

Valerio indicates that he does not share the opinion of the Secretary of State for Social Security, Octavio Granado, who said that relying only on the CPI generates perverse long-term effects and gave the current model ten years of life, and acknowledges that he asked for explanations because These statements "can generate unjustified uncertainty".

According to the Minister of Labor, the State's income problem is "evident", and as an example it emphasizes that the average tax rate in Spain is 38%, compared to 46% in the European Union.

Valerio defends that the reform has not been repealed because there is not enough parliamentary support, although he sees feasible to reform "punctual" aspects of the norm.

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