economy and politics

Parliament urges to correct the deficit of 89,000 million that Social Security has

Parliament urges to correct the deficit of 89,000 million that Social Security has

MADRID 6 Oct. () –

The PSOE, the PP, Vox and Sumar agree in urging the Government to resolve the Social Security debt situation, which as of December 31, 2022 accumulated a negative net worth of 88,759.4 million euros.

The main political forces in the country warn about this situation in their respective resolution proposals, collected by Europa Press, to the report that the Court of Auditors made on the Declaration on the General Account of the State carried out by the General Intervention (IGAE) in 2022.

In that document, the supervisory body explained that a good part of the Social Security debt is generated through loans granted by the State, some of which are extendable or directly without a repayment period.

For example, in 2022 a loan was granted to the General Treasury of Social Security worth 6,981.6 million euros. The Court also warned in its report that some of these loans have been pending repayment since the 90s.

OUTSTANDING LOANS SINCE THE 90’S

With this scenario, the main political groups in the country agree on tackling the problem. Both PSOE and PP urge the Government to resolve the Social Security debt situation vis-à-vis the State, especially the loans and debts pending amortization since the 1990s.

Vox also asks for it in its proposed resolution, where it demands that the problem be resolved with measures approved “within the Council of Ministers.”

On Sumar’s side, the plurinational group proposes stopping the granting of loans to solve crisis situations in the system, which has already become a temporary measure “that has not resolved the financing difficulties of a structural nature that the system suffers from, placing it also in a compromised position of indebtedness towards the State”.

Likewise, the plurinational group proposes that a solution be addressed for the compensation and amortization of reciprocal obligations and rights between the Administration and the entities of the Social Security system.

THE PENSION ‘PINK’, A HERITAGE

Another of the notes left by the Court of Auditors in its report is that the Reserve Fund, popularly known as the ‘pension piggy bank’, becomes part of the Social Security assets in accounting terms.

In this regard, the PP has registered a proposed resolution urging the Executive to include the Reserve Fund in the net assets of the General Treasury of Social Security.

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