The Bank of Spain warns that this item will rise “notably” in 2050 and that only 40% of the increase can be offset if the employment rate is close to that of Germany
The Bank of Spain today contradicts the government and the unions with a report it will publish this Wednesday, in the middle of the final phase of negotiations on the second phase of the pension reform: Spain spends no less on pensions than Europe; on the contrary, it spends more: it is above the ordinary EU average in relation to GDP and it is the country with the seventh largest budget for this item, despite the fact that the Spanish protection system reaches fewer people than the rest of society partners.
The organization led by Pablo Hernández de Cos also warns that these expenses will increase “significantly” in the coming decades, due to the wave of retirements that will come when the ‘baby boom’ generation retires, an expense that cannot even be predicted. be compensated if there are more and more employees and we reach the employment rate in Germany, something that would only serve to offset the 40% of that increase.
Source: La Verdad
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
