There are several reasons to consider disappointing yesterday's debate on pensions in Congress. The first was weak political response of President of Government. Their proposals, which aim to gain time and pressure to find support in budget, do not resolve immediate conflict posed by street pensioners. Raising minimum pensions with IPC would, in any case, be a starting point for relieving tensions; Raising widowhood is also a minimum requirement; and granting tax aid to pensioners will alleviate some but does not solve underlying problem.
The second reason for disappointment is inability of opposition to offer an articulated discourse and a coherent table of proposals to put government in trouble and solve a very complex problem, which cannot be reduced to a discussion on revaluation Of benefits according to IPC. Opposition interventions barely went from that level; And when y surpassed it (citizens) ir proposals of tax reduction were wielded almost as motive of a political bawling with PSOE and we can. Opposition parties prefer to simplify problem before facing it.Previous Editorials
Anti-Crisis Plan (10/03/2018)
Pension Crisis (03/03/2018)
Reformist Paralysis (03/02/2018)
The intervention and replies by Rajoy, which clearly define ir intentions, can be summarized as follows: There will be no reversals in 2013 reform, which implies maintaining maximum rise of 0.25% and sustainability factor; There will be no uploads indexed to IPC, because public accounts cannot afford it; The best policy to sustain pension system is to increase employment; And his government has never lowered pensions. But revaluation of pensions is a right and up to 0.25% can hardly be understood as revaluation; The creation of employment does not guarantee future of pensions, because factors that will strangle system in medium and long term are demographic growth and increase of time during which pensioner perceives benefit, which tends to be extended by Lengning of life expectancy. Nor is argument that "re are no resources" acceptable, because PP has followed by system a fiscal policy of income reduction, with successive tax cuts.
Demographic pressure, plus longevity, plus rising cost of new pensions over current ones, plus employment precariousness will lead without referral to a performance scenario cut by 30% or 40% over 15-year period. Agreed political decisions — in Toledo pact — must be made immediately: Pass widow's and orphan's pensions to budgets; Impose effective retirement compliance at 67 years of age within agreed period; Delete system's flat-rate allowances and bonuses granted to job creation; To raise highest prices, and to retouch labour reform in order to stimulate creation of stable employment and wage increases (where productivity permits). These and or measures are complex, difficult to negotiate; But y are beginning of salvation of pensions.
You can follow country opinion on Facebook, Twitter or subscribe here to Newsletter.