Tuesday, October 26

Escrivá, on pensions: “It is reasonable to think that we will close an agreement this week”


José Luis Escrivá in the Plenary of the Congress.

José Luis Escrivá in the Plenary of the Congress.
EFE

The first great reform of the pensions negotiated by the Government, the employers and the unions will face its decisive hours as of this Monday. “It is reasonable to think that we will close an agreement this week,” said the Minister of Inclusion and Social Security, José Luís Escrivá, a couple of hours before the key meeting begins to close the text that will then be sent to the Council of Ministers “I have the highest expectations about the meetings that we are going to hold this week,” he insisted.

“It is an extensive and neat reform. […] We have already had many meetings, in which we have been approaching “, Escrivá explained in his presentation at the Nueva Economía Forum. This first large block will include the new pension revaluation formula based on the CPI, as well as a system of incentives to extend working life and disincentives for early retirement; among others. “This reform is designed to last 25 years, until 2040,” he added.

The spirit of the policies being finalized by the Executive and the social agents is to extend the professional careers of Spaniards, so that they contribute for more years to the public treasury (and thus keep current pensioners) and, in turn, are less years depending on public revenue. “Spain has one of the lowest activity rates among people between 55 and 70 years old in the European Union, has stated.

“Broad spectrum” recovery

Escrivá has also referred to the “good” evolution of the labor market and the “broad spectrum” post-covid economic reactivation. The minister has advanced that the month of June “is being a month of great dynamism” and that it will leave a net creation of employment, in seasonally adjusted terms, of more than 200,000 jobs. This will allow us to return to the existing employment levels in the summer of 2019 and close the year with an unemployment rate “not far from the one we had in the pre-ndemic,” he said.

In this sense and on the reactivation of workers in ERTE, Escrivá has affirmed that currently 300,000 affected “are waiting for the lifting of activities to resume activity” and then there are others 150,000 workers that they will probably go through “some kind of restructuring” over the next few months; as stated.

The person in charge of Social Security has not wanted to express a strong opinion on whether or not it is time now to raise the minimum interprofessional wage (SMI), as advocated by her work counterpart, Yolanda Díaz. He has argued that “it is absolutely fundamental”, and it must be done “as quickly as possible”, since the rise in the SMI is one of the “most powerful income predistribution mechanisms”, he stated.

However, it has also considered key that the rise in the minimum wage launches a reference message for the review of rents. “Personally, I think that the rise in the SMI has to look for moments in which they are significant and substantive and for that we have room in the coming months,” he said.


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