The employers have left the dialogue table, where the Spanish Government and the unions will try to reach an agreement on the contributions in the next few hours.
The CEOE has shown its refusal to raise social contributions to fatten the ‘piggy bank’ of pensions during the meeting held this morning by the Spanish Government, the unions and the employers to try to agree on the so-called Intergenerational Equity Mechanism (MEI).
The Spanish Government has raised in the meeting this morning a gradual rise in prices starting with a rise of 0.2 points in 2023 that would increase each year, to rise to 0.3 in 2024, 0.5 in 2025 and reach 0.6 in 2026, as part of the Intergenerational Equity Mechanism ( MEI) that ensures the sustainability of the pension system.
According to the last known proposal of the Executive, the rise in the contributions for the MEI would begin to govern from 2023 with the aim of fattening the Reserve Fund of pensions, which currently has just over 2.1 billion euros, and power Well cope with future expenses.
This 0.6 point increase in prices would be distributed between 0.5 points for the company and 0.1 points for the worker and it would remain until 2032, when it would decline again at the same rate: 0.5 points in 2033, 0.3 points in 2034 and 0.2 points in 2035.
The latest proposal presented by the Government last Monday raised an additional contribution to Social Security of 0.6 points, which companies and workers should pay for ten years to nourish the reserve fund at a rate of 0.4 and 0.2 points , respectively.
The CEOE Executive Committee today rejected the proposal of the Government in relation to the Intergenerational Equity Mechanism of pensions, which should replace the Sustainability Factor, 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 indicated in a statement.
In this way, the refusal of the CEOE clears the way for an agreement between the Spanish Executive and the unions, which have supported a future increase in contributions to meet the cost of paying pensions to baby boomers.
Spanish Government sources have indicated to Europa Press that it is going to try this agreement, that could occur this afternoon, thus fulfilling the stipulated term, which marked November 15 as the deadline to define the MEI.
In fact, union sources have told Europa Press that this afternoon they will maintain contacts with the Government to “readjust” the proposal that was presented to them at the negotiation table, consisting of a 0.6% increase in quotas for ten years.
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