Spain to Go Ahead with Long-Awaited Pension Reform

Spain is moving forward with a long-awaited pension reform which will tightly restrict index-linking of pension payouts and aims at saving 33 billion euros over the next decade. Rises in pension payments will no longer be automatically indexed to annual inflation.

This is something the European Union have demanded for years but Prime Minister Mariano Rajoy had resisted until now to avoid upsetting some 9 million pensioners.

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Pensioners play dominoes at a seniors centre during the International Day of Older Persons in Ronda, near Malaga. The reform, which the government plans to present in the next few weeks and hopes will be passed by parliament before the end of the year, will help square the circle of next year's budget, with expected savings of 800 million euros in 2014.
Pensioners play dominoes at a seniors centre during the International Day of Older Persons in Ronda, near Malaga. The reform, which the government plans to present in the next few weeks and hopes will be passed by parliament before the end of the year, will help square the circle of next year's budget, with expected savings of 800 million euros in 2014.

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