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Brussels warns that it can suspend funds to Spain if it does not guarantee the sustainability of pensions

Brussels warns that it can suspend funds to Spain if it does not guarantee the sustainability of pensions

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The reform of the pensions, to debate. The European Commission has responded to a parliamentary question from the MEP of citizens and vice-president of the Economic Commission, Eva Popchevaensuring that the delivery of recovery funds to Spain could be compromised if it is not carried out a pension reform that ensures the principles of intergenerational equity and sustainability.

Poptcheva warned last October that the unprecedented increase in pensions announced by the Government of Sánchez went in the opposite direction to what was required by the Commission, and assured that the Executive of PSOE-Podemos, which had committed to Brussels to reform the system in July 2021 within the framework of the Recovery Plan, was using the pensions to carry out “electoral campaign with the public budget”. In response, Commissioner Gentiloni maintains that despite not having yet evaluated the pension milestone, the Community Executive has already “indicated its concern about the fiscal sustainability of the reform package of the recovery and resilience plan, which included the intergenerational equity mechanism”.

The 8.5% rise will be evaluated at the beginning of 2023, and the Commission has ensured that if the objectives have not been satisfactorily met, “will partially suspend the payment.” “The Member State will then have six months to take the necessary measures to ensure satisfactory compliance with the milestones. If this has not been done within six months, the total amount of the financial contribution and, where appropriate, the loan will be reduced proportionally”, the answer continues.

Ciudadanos leads in Spain and Europe the battle against the uncontrolled increase in pensions that the Government of Pedro Sánchez has raised. The liberal party has actively denounced that Sánchez’s measure “mortgages future generations” and it goes in the opposite direction of the reform that the European Commission required to receive Next Generation EU funds.



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