“Young people should not bear the pension spending of the ‘baby boomers'”

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MADRID

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The Minister of Inclusion, Social Security and Migration, José Luis Escrivá, has referred this Monday to his controversial statements that the ‘baby boomers’ will suffer a “moderate adjustment” of their pension or will have to work longer with the new mechanism of intergenerational equity to be negotiated by the Government, unions and employers. Escrivá, in statements to La Sexta collected by Ep, explained that it is not that the ‘baby boomers’ receive less pension or work longer but that today’s young people, the children of that generation, do not bear the highest expenditure on pensions which will mean the arrival of their parents to retirement age.

That of young people, Escrivá explained, is a smaller and “narrower” generation than that of the ‘baby boomers’ and that also suffers from “a lot of job insecurity”. “We have to internalize that they cannot bear certain costs and I am not referring only to pensions, but to all public policies. We must protect young people, “he said. In addition, he has insisted that “He did not express himself well” and that it was inopportune, because the day he made those reflections was the day the pension agreement reached with the social agents was signed. “It was the day to value the agreement,” he acknowledged.

Thus, just as the gender component has been incorporated into the design of public policies, the minister believes that this youth component should be introduced in the preparation of public policies. “The effort cannot fall on the young. We have to find among all how to avoid it And in the same way that a year ago it seemed difficult to reach an agreement on early and delayed retirements, I am convinced that we will agree. There are different ways to do it, “added the minister.

In any case, it has pointed out that the measures agreed in the social agreement are “substantive enough” to “The same is not necessary” apply the intergenerational equity mechanism that will replace the sustainability factor. “In case we had to think about something else or not, we must have a frame of reference, that is why we have to agree on it,” he pointed out.

For Escrivá, this mechanism “is not the most important thing” of the agreement with the social agents, since the most important thing is that the pensions will be updated with the CPI and that the effective retirement age will be delayed thanks to a good pension scheme. incentives. “With a good incentive scheme we can get people to work longer, and that is the most powerful element for the sustainability of the system,” he added.

Thus, “within the aggregate package,” the intergenerational equity mechanism “It is a minor issue and perfectly manageable”, has insisted the minister, who has recalled that the agreement reached with the social agents moves within the parameters of the recommendations of the Toledo Pact.

Escrivá stressed that Spain “does not have an acute pension problem”, since its current spending is 12% of GDP, compared to 16% of GDP in France and Italy, and what is estimated is that, if Spain did nothing At some point in the late 1940s, spending of 16% of GDP would be achieved.

And what we are doing is gently preparing ourselves to handle that problem, which is manageable. As of 2050, when young people reach retirement age, spending falls very markedly, 2.5 points, ”said the minister, who has made it clear that the reform agreed with unions and employers does not oblige them to work more years, as that is still voluntary.

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