The Toledo Pact closes its recommendations after four years of debate: pensions to the IPC, delaying retirement and cleaning up the system

 It took more than four years, divided into up to three different legislatures, for the Toledo Pact to be able to close its recommendations with which to try to guarantee the future of Social Security. This Friday, the board and the spokespersons of this commission have agreed on a draft, which must still be ratified next Tuesday, which includes a score of measures and among which the decision to indefinitely link the pensions to the CPI, promote the delay of retirement and clean up the accounts of the system in a period of three years.

The indexation of benefits was a proposal that was already adopted in the previous legislature, before United We Can blow up the agreements that the Toledo Pact had reached. Now, and despite numerous warnings from international organizations about the imbalances it can cause, the measure is resumed, in line with what the Minister of Social Security, Josà © Luis Escrivá, has announced and promised on more than one occasion.

In the aforementioned notices, it is always pointed out that important complementary actions will be necessary to face the heavy outlay. And in this context, the Toledo Pact bets for making the so-called improper expenses begin to be assumed by the Budgets State Generals (PGE). They are, for example, the payment of certain benefits or even the expenses of officials, and the total amount of these items exceeds 20,000 million that must be assumed, progressively and in the period of the next three years, for the accounts. The Government, anticipating the proposal, already contemplates an extraordinary transfer of 18,396 million in concept of these expenses.

However, some experts such as Josà © Antonio Herce have argued that this only means changing the problem of place. “What we will be doing is taking out the bun from the hot oven of Social Security to put it in the burning oven of the Budgets” Herce said in a recent interview in this newspaper.

Delay retirement and robots?

The document also contains a recommendation to encourage delay in retirement and try to bring the actual retirement age closer to the legal one. In Spain, the real retirement age is below 65 years, while the opposite occurs in the OECD average, that is, that retirement occurs after the minimum required by the law.

This situation also contrasts with the fact that the international recommendations of the Bank of Spain and of Escriv himself suggest that the retirement age should be close to 67 years, since this would allow an increase in income and reduce expenses. Therefore, the Toledo Pact proposes to toughen penalties in early retirement although, at the same time, it calls on the Government to study on which groups exceptions can be applied.

The digitization of the economy is another of the points that is collected in the document and, as advanced Expansion, the commission raises the possibility that companies are listed on the productivity achieved by technological advance. This is, by the activity of machines and robots. This measure is part of what the Pact has called the need to “find innovative mechanisms that contemplate the financing of Social Security, beyond social contributions”, reports Europa Press.

The vote, Tuesday

All these recommendations must be endorsed next Tuesday and the objective is to achieve unanimity from all parties. In this sense, parliamentary sources point to EFE that ERC could abstain and that formations such as the PP or Vox could cast a particular vote. However, a situation like that of February of last year seems to be ruled out when We can filed an amendment to the whole and it caused a draft that was agreed to decay.

United Podemos has not been slow to celebrate the agreement in the Toledo Pact of Congress considering that “it supposes the de facto repeal of the pension reform of the PP of 2013″. Sources from the left-wing coalition have assured Europa Press that the main objective of the training was “that the new text guarantee certainty to pensioners” and they assure that the final text of the recommendations “includes the objectives set out in the coalition agreement, in order to guarantee decent pensions and a sustainable public system “.

The PP, for its part, has demanded that the reform in the self-employed system to adapt their contributions to their real income, and that contemplates the Toledo Pact in the renewal of its recommendations, be carried out within the framework of the day social logo and is not made “unilaterally” by the Government.

In one of its recommendations, the Toledo Pact urges the Government to initiate a process of adjusting the contributions of the self-employed to their real income, an issue on which the Ministry of Inclusion, Social Security and Migrations was already working, and on the that a first proposal has already been sent to the self-employed organizations, reports Efe.

“This is one of the issues that the PP considers fundamental for the PP’s approach and approval of the recommendations of the Toledo Pact, with the requirement that the Executive do not proceed unilaterally and approve their inclusion in the aforementioned Board of Directors. Social logo “, these sources have underlined.

Lorenzo Amor, president of ATA and vice president of CEOE has thanked on his Twitter network the popular that this qualification has been included in the draft recommendations that will be voted on on Tuesday.

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