This Monday the last meeting is held to close an agreement on the Intergenerational Equity Mechanism

The Spanish government and social agents have this Monday in Madrid a decisive appointment on pension reform. The meeting scheduled for 11:00 hours should be the last, since tomorrow the deadline set for agree on the intergenerational equity mechanism (MEI), but they are still far from the agreement.

The last proposal of the Ministry of Inclusion, Social Security and Migrations was that of raise social contributions by 0.6% for 10 years to face future spending stresses in the system.

This 0.6% increase in prices generated malaise in the bosses for implying a new increase in the costs of the companies after the announced increase in the minimum rate of Corporation Tax included in the 2022 budget project and the increase in the minimum interprofessional wage (SMI), among other measures adopted by the Government that involve higher business spending.

The unions, for his part, they do not look bad that social contributions be increased to be able to meet the expenses that future retirements of the ‘baby boomers’ will imply, those born between 1958 and 1977. In this period almost 14 million people were born, 2.5 more than in the twenty years previous years and 4.5 million more than in the twenty following years.

El MEI It is part of the first leg of the pension reform that is being processed in Congress. The idea is to introduce what is agreed via amendment. This mechanism, which will operate from 2027 y swill establish the sustainability factor of the 2013 reform, aims to preserve the balance of the long-term system and equity between the different generations of pensioners.

The Minister of Inclusion, Social Security and Migrations, José Luis Escrivá, has defended that the proposal on the intergenerational equity mechanism “does not cut any pension in any case and at any time“In contrast to the sustainability factor of the 2013 reform, which penalized pensioners with cuts, especially the youngest.