pay the hole with taxes and raise the real retirement age

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The Minister of Social Security, José Luis Escrivá, announces a reduction in spending on temporary disability benefits and recognizes that the system is “overloaded” with costs outside the contributions

The Minister of Inclusion, Social Security and Migration, José Luis Escrivá, has admitted today that the pension management agency is “overloaded“For expenses that” do not apply “. Escrivá has been so blunt in his first appearance before the Labor Committee of the Congress of Deputies, before which he has asked not to be alarmed about the situation of the system. The pension minister has argued that although “Social Security is solvent and solid”, is “overloaded” with expenses that are foreign to its own functioning, such as active employment policies, which “should be in charge” of the General State Budgets since “They reduce the quotation system”. The minister has announced that it will be the Toledo Pact, where next week will appear, the framework in which a new model for pensions should be designed to return the “certainty” to citizens. In the field of Social Security, he announced his intention to reduce spending on Temporary Disability. “Social Security is spent 300 million a year in incentives to the autonomous communities for Temporary Disability, surely there is room to use them better,” he said. He has also announced his intention to “explore” a very important lever such as the possibility of offer positive incentives to delay the actual retirement age. In this regard, he recalled that in Spain the real retirement age is between 65 and 67, while the effective age is “much lower.” “There are Social Security instruments to voluntarily promote longer retirements that are barely being used or that are not even known,” he explained.

Escrivá has also admitted that the state is “inefficient and mediocre” in the fight against inequality among Spaniards and has announced that his department will establish a Minimum Vital Income whose design will include the “underutilized” instruments available to the administration, including the “heterogeneous” programs of the 17 autonomous regions, which do not generate “sufficient levels of cohesion.” In his view, that Minimum Vital Income has to be “flexible” because there are different needs for inclusion; “Effective”, so that the most vulnerable and “sufficient” groups benefit, because we are going to set a goal for reducing inequality. “My impression is that with less endowment than is assumed, the objectives can be achieved.” The minister has requested a broad consensus from the different political groups in the three areas of his portfolio: inclusion, pensions and migrations.

Escrivá recalled that in the last ten years the inequality indicator has worsened. In this regard, he said that countries such as Portugal or Greece have managed to reduce inequality during this period. “If we look at the lowest part of the distribution, that of those whose income represents 30% of the average income, Spain is the European country located in the worst position.” According to the minister, Spain starts from a “very poor” situation, with “very inefficient public policies to reduce inequality”. “The intervention of the State is inefficient, mediocre and generates a vicious circle ”, has manifested.



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