Spain must reform the pensions for the Recovery Fund. This is what the new European “Stick” looks like. For Italy “The Patrimonial”
There are no free meals, especially if they come from Brussels, indeed only bitter sprouts arrive from the European capital. As also underlined by the FT, the Recovery Fund is nothing more than an instrument to force the austerity "reforms" desired by the North, hence the permanent recession for the South.
This trap, in which various governments, including ours are making their respective peoples fall, is taking off on Spain and threatens to blow up the government of Pedro Sanchez, even if there is always the "Trick" up the left sleeve. Brussels, in exchange for the approval of the Recovery Fund, asked for a pension reform in Madrid, considering the current system too generous for the Spaniards. Too bad that the current governing coalition sees the PSOE allied with Podemos, the left-wing party of Iglesias which has made the protection of pensions one of its strong points.
The reform proposed by the PSOE was quite simple: increasing the period over which pensions are calculated from 25 years to 35 , a move that, in the government's own calculations, would have reduced pensions by 6.3%. Practically, retirees are sent into perspective a little more on the pavement, for the future, to have money now.
Iglesias verbally rejected the plan of Sanchez and the competent minister Escrivà, but the latter was lucky enough to have communicated the move to Brussels, not the extent of it. So probably, there will be an increase in the pension calculation period, but it won't be the 10 years of the first proposal. Even if there were three, however, there would be a reduction in pensions.
Brussels wants the property on the house from us. So, dear Italians, you already know what the cost of having the "Recovery Fund" will be. A fund that, in the end, is financed by your taxes (called "own means") that you will pay directly to Brussels. Gualtieri hasn't told you yet, but your homes will pay dearly.
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The article Spain must reform pensions for the Recovery Fund. This is what the new European “Stick” looks like. For Italy, "La Patrimonial" comes from ScenariEconomici.it .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/la-spagna-deve-riformare-le-pensioni-per-il-recovery-fund-ecco-come-si-present-il-nuovo-bastone-europeo-per-litalia-la-patrimoniale/ on Thu, 21 Jan 2021 21:17:46 +0000.