Spain’s left-wing authorities handed a controversial pension reform that was rubber-stamped by the commerce unions however sharply criticized by business leaders and the conservative opposition.
The plan was authorised by the Council of Ministers in Madrid on Thursday, however should nonetheless move parliament, the place the minority authorities of Prime Minister Pedro Sánchez is commonly supported by smaller events.
The pension reform fulfils a requirement of the European Union, which had made additional disbursements of funds tp Spain from its Corona Reconstruction Fund depending on it. It additionally goals to make sure that the pension system stays financially sustainable, as the largest problem forward is the upcoming retirement of the child boomers.
Among different issues, the revenue of the pension fund is to be improved by a sluggish however regular enhance in contributions. At the identical time, state subsidies and decrease pensions are to be elevated. The introduction of a “solidarity quota” for the social contributions of upper earners can also be envisaged.
The conservative People’s Party (PP) of opposition chief Alberto Núñez Feijóo rejected above all of the deliberate enhance in contributions as a “new tax on labour and talent.” The social gathering mentioned it might reform the pension system once more if it gained the elections on the finish of the 12 months and returned to energy.
Unlike in France, the place mass protests confronted Emmanuel Macron’s authorities, which pushed its personal pension reform by parliament on Thursday, there have been no such conflicts in Spain regardless of heated debates.
The French plan would increase the retirement age to 64 from 62. By distinction, in Spain, the retirement age just isn’t the burning problem as this has been regularly raised since 2013 and can attain 67 by 2027.
Source: www.anews.com.tr
