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Wednesday, Jan 15, 2025

Feijóo Commits Support to Pension Reform but Rejects Housing State Agreement

Feijóo Commits Support to Pension Reform but Rejects Housing State Agreement

Opposition leader Feijóo signals backing for pension reform amidst coalition hesitance while ruling out collaboration on housing policy
Alberto Núñez Feijóo, leader of Spain’s People's Party (PP), has confirmed his party's support for the government's latest pension reform, addressing concerns over potential opposition from typical government allies such as ERC, Bildu, BNG, and Podemos.

Speaking at an event organized by the Nueva Economía Fórum, Feijóo expressed that while he disagreed with the process, he approved of the content, which has been agreed upon by employers and unions.

'It is necessary to convene the party to form a final position,' he commented, signifying an internal consensus on backing the decree, which is set for congressional debate next week.

Contrastingly, Feijóo has dismissed the prospect of a housing policy agreement with the government, following the presentation of divergent strategies to tackle rising property costs.

The opposition to cooperation has been exacerbated by the controversy surrounding the so-called 'Ley Begoña,' seen by the PP as an attempt to limit media freedoms and protect certain individuals near the president.

Feijóo's public statements underscore a fundamental split between the government's and the opposition's approaches to housing.

In alignment with his pension reform stance, Secretary General of UGT, Pepe Álvarez, had previously indicated the likelihood of PP support at the union's federal congress.

Having reached an accord with the government and business representatives back in September, the reform awaits legislative validation.

Prime Minister Pedro Sánchez hailed the reform's potential to strengthen the pension system.

This marks the first significant instance of mutual agreement between the PP and the current government on such a crucial economic issue since José Luis Escrivá spearheaded previous reforms last term.

These reforms included linking pensions to inflation and improving system revenue, yet did not win over employers.

The present initiative under Elma Saiz boasts broader backing, ensuring its advancement through parliament.

The reform incentivizes extended working life, especially relevant for the 'baby boomer' demographic approaching retirement.

It introduces compatibility between monetary incentives and active retirement, allowing individuals to receive part of their pension while still employed.

Further, it proposes changes to partial retirement, enabling workers to reduce working hours more flexibly.

Additionally, the reform introduces no parliamentary-dependent elements like better conditions for workers in strenuous jobs and a new role for mutual societies in handling medical cases to alleviate healthcare throughput.

Despite parliamentary independence, this aspect faces criticism from certain political quarters, notably ERC and BNG, citing concerns over favoring private over public healthcare.

The more significant role attributed to mutual societies stems from the 2023 Agreement for Employment and Collective Bargaining, driven by a rise in occupational health issues, proposing expanded use contingent on patient consent.

Supporters argue that their integration into the Social Security system justifies the move, addressing increased wait times and prolonged sick leaves.
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