February 27, 2021

Valerio anticipates that next year a loan will also be requested to pay pensions

Valerio anticipates that next year a loan will also be requested to pay pensions


EP

MadridUpdated:

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The Minister of Labor, Migrations and Social Security, Magdalena Valerio, has announced that next year will also be will need some credit to face the ordinary and extraordinary payment of pensions, since "only with contributions the system can not be maintained".

"We must transmit confidence, because the Government will not stop paying pensions to pensioners," stressed the minister, after stating that it is "unquestionable" that the General Treasury of Social Security will need a injection of money via General State Budgets (PGE) to pay pensions.

Valerio said so during an informational luncheon organized by the Club Siglo XXI on Tuesday, where he said that "there may be debate about whether to introduce general, special or 'ad hoc' taxes to pay pensions, but that a injection via PGE is unquestionable ».

Also, Valerio has pointed out that it will be very difficult to reorient "the ship" of the Social Security in a year, but has stressed that it is necessary to "reorient" it. The head of the Ministry has also made it clear that she would like to need less money from credit to cover the disbursement of the extraordinary payment of pensions.

«I wish I needed less and I wish can keep something from the Social Security Reserve Fund, "Valerio stressed, after remembering that the contributions are increasing above 5% and ensuring that he would like to use less credit than this year to meet the disbursement of extraordinary payments of July and December.

In this line, Valerio said that the improvement of employment is already a starting point for the sustainability of the system, but stressed that the reality shows that if it creates jobs and is precarious, "is insufficient to reverse the deterioration of the system" .

In addition, the minister believes that financial stability must be achieved by taking measures in relation to income, respecting the work methodology, the social dialogue framework and the Toledo Pact.

"We do not have a problem of excess spending on pensions, but of income," said Valerio, after stating that the previous government did not look for alternative elements as it was seen that the contributions were not enough.

Regarding the manifestations of pensioners, Valerio believes that pensioners have taken to the streets as well as unions and many parties, because the rise of 0.25% was already an "untenable" situation and "when something happens socially, it also does it politically."

"I want to think that when people go to the street is because they are claiming something that is not fair," he stressed, after stating that he is in favor of revaluing pensions according to the CPI and that "of course" is in favor to reorder the entire Social Security system for 2020-2023, so that when the baby boom generation becomes a pensioner the system will be "healthy".

"We have to complete the financing via contributions with taxes, then we can discuss from there," according to Valerio. "We will have to sit down to discuss what we want to do and where we want the system to go," he added.

On the other hand, asked about the budgets for next year, the minister has been confident that there are public accounts for next year, in which there is agreement of the Toledo Pact and in which major agreements are made in the social dialogue. "Sometimes in a minority, more things are done than in the majority," said Valerio, who also reminded the political groups that represent citizenship and that "we must set an example".

Finally, Valerio has emphasized that the path to be taken «it does not happen by giving citizens easy answers to complex problems ».

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