The Bank of Spain warns of unprecedented levels of debt and deficit if spending on pensions is not reduced

Far from solving or at least cushioning the financial problem that is coming to Spain with pensions, as Brussels demands and as the Government of Pedro Sánchez has promised to do, the reform promoted by José Luis Escrivá has further clouded expectations about the impact that the retirement of the 'baby boomers' is going to have on public accounts.

The Bank of Spain warns of unprecedented levels of debt and deficit if spending on pensions is not reduced

Far from solving or at least cushioning the financial problem that is coming to Spain with pensions, as Brussels demands and as the Government of Pedro Sánchez has promised to do, the reform promoted by José Luis Escrivá has further clouded expectations about the impact that the retirement of the 'baby boomers' is going to have on public accounts. The level of risk is such that the Bank of Spain has once again placed the issue at the forefront of its concerns in the latest edition of its Annual Report, which has just been made public this Wednesday.

The institution continues to point out the evolution of spending by the public pension system as the main future threat to public accounts and warns that in the absence of measures to contain expenses and to generate new income, this could lead public accounts to a level unprecedented decline.

Translated into figures, the projections of the Bank of Spain suggest that after the reform carried out by the Government and in the absence of new measures that contribute to bringing the costs of the system under control, the public deficit could be structurally anchored at levels close to 6%. of GDP and public debt to go up to 140% of GDP.


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