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Once the last reform decision did not restrict the increase in spending and did not eliminate the actuarial imbalance, the sustainability of the pension system will involve a constant increase in taxation and transfers from central government, increasing the burden on the younger generations.
The public deficit forecasts contained in the 2021–2024 Updated Stability Program provided by the Spanish government to the European Commission have recently been disclosed. For 2021, the collective target deficit for the Public Administrations is 8.4% of GDP, which will progressively decrease to reach 3.2% in 2024.
The recommendations of the Pension Commission of the Spanish Congress (Pacto de Toledo) are a good starting point for addressing gradual changes in the system, but they are not enough to ensure its sustainability. If the appropriate measures are not taken, the recommendations have the potential to imbalance the system.
Recently, the COVID-19 crisis has highlighted how the Spanish pension system's financial sustainability problems are worsening. The Ministry of Social Security is predicting a GDP deficit of 4.1% for 2020.
The structure of the current Spanish pension scheme is essentially the same as when it was set up at the end of the 1960s. In the 50 years that have gone by since its creation, the only changes it has seen have been to its parameters.
El agotamiento del Fondo de Reserva de la Seguridad Social, previsiblemente en 2017, ha vuelto a plantear la necesidad de adoptar nuevas medidas para reducir el déficit existente, fortalecer su sostenibilidad y asegurar la suficiencia de las pensiones futuras, un pilar fundamental del Estado de bienestar que hay que preserv…
The persistent Social Security deficit and the continuous tapping of the Reserve Fund, which has dropped 62% from the 66.8 billion of 2011, has spurred another intense debate about the viability of Spain’s pension system.
El déficit de la Seguridad Social y la disminución del Fondo de Reserva ha vuelto a plantear un intenso debate sobre qué hacer con el sistema público de pensiones.