1 of 1 In Spain, Congress approved the pension reform pushed by the Socialist Party government of Pedro Sánchez. — Photo: AFP THOMAS COEX In Spain, Congress approved the pension reform pushed by the Socialist Party government of Pedro Sánchez. — Photo: AFP THOMAS COEX
In Spain, the pension reform was approved in the Spanish Congress with 179 votes in favour, 104 against and 61 abstentions. One of the points that draws the most attention is that in the years to come, contributions from higher earners should increase. It will even introduce a “solidarity quota” levied on those with very high wages.
The package of changes primarily includes an increase in the contribution of entrepreneurs. The idea is to promote a “mechanism for intergenerational justice” feeding a “reserve fund” created for times of instability. Increases in minimum and maximum pensions are also planned.
In addition, the reform brings changes that women can benefit from, as highlighted by the Minister for Integration, Social Security and Migration, José Luis Escrivá. With the new standard, the previous model of “gap coverage” for periods of interruption in working life will be reinforced with a longer period of validity for women.
Escrivá also stated that the newly passed law allows for the “recognition of rights” and the “removal of uncertainties from previous reforms”, and also named the selfemployed, irregular workers and more vulnerable pensioners as future beneficiaries of the change.
The text, approved by Spain’s largest unions, did not meet with the same response from employers’ federations.
The reform, already endorsed by the European Commission, responds to one of the key conditions Brussels is asking for in exchange for resources from the postpandemic European Recovery Plan. With 140 billion euros, Spain is one of the countries that will benefit most from the program.
different weather
Correlating the Spanish context with what has happened in France, where there have been strong popular demonstrations against pension reform for weeks, it is easy to see that the reactions and movements cannot be compared to the measures generated in the two countries.
There are no popular protests in the streets on Spanish territory, and the most relevant resistance to the idea takes place in the legislative sphere.
One of the main opponents of the current Spanish government, Alberto Nuñez Feijóo, leader of the People’s Party, has criticized the measure, saying that it is not really a reform but in fact “a patch”.
Appreciating the interest in the sustainability of social security, Feijóo even cited the French government for saying that the Spanish executive is doing the exact opposite of what is being done in the neighboring country.
“We are making a mistake by postponing an important debate on job creation,” the PP leader warned.
The Spanish press has reported extensively on the social security reform going on in the country and in many vehicles what is put into practice here is compared with the French reality.
In this sense, the television channel La Sexta drew attention to a few points. For example, the retirement age, which Macron’s reform raises from 62 to 64, and which in Spain is 65 and is expected to reach 67 in 2027. In France, 43 years of contributions must have been paid in order to receive a full pension, while in Spain, for example, the minimum time remains at 38.5 years in 2027.
The two reforms also differ in their systematics. While the French model focuses on reducing costs, the Spanish measure aims to improve the social security scenario by increasing collections.