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Treasury ignores Brussels and Bank of Spain and will increase pension with CPI

The Minister of Finance and Public Functions, Maria Jess Monteiro, has outlined in Congress this Wednesday the “commitment to all…

By admin , in news , at May 18, 2022

The Minister of Finance and Public Functions, Maria Jess Monteiro, has outlined in Congress this Wednesday the “commitment to all pensioners” achieved by the coalition government. Increase in pension according to CPIDespite the upward spiral and the European Commission’s latest statements on the matter.

And that’s what the commissioner of the economy, Pablo Gentiloni, warned. exposure to public accounts Linking pension growth again to inflation, if it continues in an upward spiral, as does the latest pension reform.

Gentiloni assured that the government is committed to ensuring that the pension system is “fiscally sustainable” and that the issue will be addressed in the next phases of the recovery plan.

In statements to the media in the corridors of Congress, the head of the Treasury stressed that “this reform is part of the government’s commitment to all pensioners” and, therefore,The executive is going to “comply” with the increase according to inflation.

In this sense, he has expressed his belief that the SAE module price will increase in the second half of the year, but he has stated that “in any case” pensions will increase in accordance with the increase in CPI, compliance with this reform, and the general state. Budget without depending on the project.

Bank of Spain warns of risks

The Bank of Spain is demanding that pensions also be part of the income agreement, as its link with the CPI will result in public spending in 2022. Beyond deciding “as soon as possible” on sources of income that will allow it to finance spending, the agency warns that retaining the purchasing power of pensions raises some equity issues.

“On the one hand, the same equity considerations justify a guarantee of purchasing power for minimum pensioners. But, on the other hand, outside this specific group, the fact that there is a group of agents, a group of pensioners, who have been adjusted by excluded, essentially means that other agents of the national economy (obtaining income from labor and capital) have to bear a substantial portion of these costs”, he argues.

Treasury ignores Brussels and Bank of Spain and will increase pension with CPI

2022-05-18 10:35:21