The Minister of Inclusion, Social Security and Migration, José Luis Escrivá, has precipitated the tripartite social disagreement by signing a pact alone with the trade union organizations on the Intergenerational Equity Mechanism, the main fringe that remained to be closed from the first part of the pension reform that is being processed in the Congress of Deputies, but which is not committed to the European Commission until the end of 2022.
After weeks of negotiations and these last days of intense contacts in which the formula has been modulated on several occasions, the minister has chosen to let go of the option of adding the CEOE to the pact and agreeing on the mechanism alone with the unions. After having introduced the repeal of the Sustainability Factor in this first section of the reform, the head of Social Security has given up giving more time to social dialogue and has strictly complied with the deadline set in the agreement reached in June with the social agents , which ended this November 15. And this despite the fact that in the Recovery Plan this measure is committed to Brussels for the fourth quarter of 2022.
Against the businessmen, who this morning got up from the negotiating table and said ‘no’ to the formula proposed by Escrivá, the Ministry has reached an agreement with CCOO and UGT to “reactivate” the Reserve Fund of Social Security through a finalist contribution between 2023 and 2032. The contribution will be 0.6 percentage points of the contribution for common contingencies, distributed between the company and the worker with the same distribution as in social contributions (that is: 0.5 points for the company and 0.1 points for the worker). In this way, the load initially planned for companies rises (0.4 points) after the CEOE rejects the latest Escrivá proposals.
As explained by the Ministry in a statement, this contribution will act as a “safety valve” of the system from 2033, in the event that there is a deviation from the forecast of pension spending for 2050. “In the event that there is no If there is a deviation from the planned spending path, no measure will be applied and the use of reserve fund resources will be considered to reduce social contributions or improve the amount of pensions, “the note adds.
In parallel, it has been agreed that if from 2033 it will be appreciated in the Aging Reports (Ageing Report) of the European Commission a deviation of the forecast of pension spending to 2050 with respect to the report of 2024 (which will be used as a reference), This Fund will be used, with an annual disposal limit of 0.2% of GDP. In addition, it has been agreed that if the provision of assets from the Reserve Fund is not sufficient, the Government will negotiate with the social partners for their elevation to the Toledo Pact a proposal that, “in a balanced way, is well directed at reducing the percentage of spending in pensions in terms of GDP, either to increase the rate of contribution or other alternative formulas to increase income “.
In this way, the Government – specifically, Minister Escrivá – precipitates in the social dialogue a measure that has the absolute rejection of the CEOE and that it intends to approve via amendment in the parliamentary processing of the first part of the pension reform, before the end of the year. This also leaves little margin for the Cortes, with respect to a measure that is committed to Brussels by the end of 2022 and that would begin to operate in 2023. Moreover, in the operational agreement of the funds, the Community Executive gives margin to the Council of Ministers to approve this measure until June 30, 2022 and request a evaluation of the impact of the measure that proves that intergenerational equity is guaranteed.
The employer’s association has rejected Escrivá’s proposal, considering that it is “insufficient, that it does not guarantee the balance of the system and that it will need additional measures in the future to ensure its sustainability,” as CEOE and Cepyme have stated in a statement after the Executive Committee convened. on the morning of this Monday urgently after a weekend of intense contacts with all the gangs. Employers emphasize that increasing social contributions and making the greatest burden fall on companies has “negative effects on employment and goes in the opposite direction to what the public pension system needs.”
In the opinion of the employers, “the Executive’s proposal has little intergenerational nature since it burdens all efforts on current and future workers, especially on young people.” “CEOE and Cepyme consider that this is not the time to increase business costs and put recovery at risk by eroding productivity and competitiveness of companies “, concludes the statement sent to the media after finalizing the meeting of the business leadership in which it was rejected unanimously the proposal that the Government has finally ended up signing exclusively with the trade union organizations.
Source: LA INFORMACIÓN – Lo último by www.lainformacion.com.
*The article has been translated based on the content of LA INFORMACIÓN – Lo último by www.lainformacion.com. If there is any problem regarding the content, copyright, please leave a report below the article. We will try to process as quickly as possible to protect the rights of the author. Thank you very much!
*We just want readers to access information more quickly and easily with other multilingual content, instead of information only available in a certain language.
*We always respect the copyright of the content of the author and always include the original link of the source article.If the author disagrees, just leave the report below the article, the article will be edited or deleted at the request of the author. Thanks very much! Best regards!