Did you know that the Troika recommends increasing the retirement age?
On May 29th, 2013 the recommendations of the European Commission for all EU countries were known, except for those who are immersed in adjustment programs – the result of the bailouts (Greece, Ireland, Portugal and Cyprus). These guidelines govern the economic and fiscal policy of these states during 2013 and 2014, but include far-reaching reforms that will be difficult to alter.
In the case of the Spanish State, the European Union’s Council, following the recommendations of the European Commission, claims «other measures will be needed to control spending increases caused by the aging of the population, for example, proper regulation of the sustainability factor foreseen in the pension reform of 2011, which, among other things, provides that the retirement age is extended in line with increasing life expectancy». In other words, it «subtly» requires the Spanish government to delay retirement age.
But what really endangers public pensions is not living more years, but the austerity policies that create unemployment (therefore less contributors) and growing income inequality. This process, which we are witnessing in the recent years, dangerously lowers the wage bill with which pensions are financed. With the deterioration of labor rights, wages are lowered and therefore, so are the contributions.
On the other hand, are our pensions somewhat excessive in relation to our economy? In 2010, according to data provided by Eurostat on the average annual perception per retirement pensions in the countries of the EU-15, Denmark had the most beneficial pension (18,579.8€) followed by the Netherlands (18,035.6€). However Spain, with an amount of 11,702€ per year, was at the end of the list, only ahead of Greece (8,362.0€) and Portugal (EUR 7,099.7).
Our pensions are in danger, and delaying the retirement age is not the solution.
Public pensions are a right loved by the people and a very effective tool to prevent poverty of much of our elders.
Do you think that cutting and/or freezing pensions is the only possible way to pay off debt and consolidate state accounts?
Do not let them steal our rights!
We don’t owe, we won’t pay.
With debt we all lose.
SOURCES: «Council Recommendation aimed to end the excessive public deficit situation in Spain»