Every day, the correspondents’ club describes how the same current event is illustrated in two countries.
While the French government decided on Thursday March 16 to do without a last vote in the National Assembly to pass its pension reform, using article 49.3 of the Constitution, the subject is also in the news in Spain. and in Turkey.
In Spain, a reform to increase the contribution of the richest
After months of negotiation, the left-wing government in power in Spain reached an agreement on March 10 on a reform of the method of calculating retirement pensions. Required by Brussels, in exchange for the fourth installment of funds from the post-Covid European recovery plan, it will make greater use of the highest incomes.
This reform, key for the government of Pedro Sánchez, has caused much ink to flow. In November 2021, he had already announced an agreement on the increase in contributions, without postponing the legal retirement age, which is to increase to 67 in 2027. But there remained a crucial point, a source of discord between the socialists and their Unidas Podemos partners: the period of work taken into account for the calculation of pensions. Finally, the system adopted provides that the amount of pensions is still calculated on the basis of the last 25 or 29 years of contributions, excluding the two worst. And the retiree will be able to choose the most advantageous option for him.
But this reform also aims to increase revenue. Instead of lowering pensions or pushing back the legal age even further, Spain has therefore decided to increase the contribution of the highest incomes. Spanish Social Security Minister José Luis Escrivá welcomed the deal, which received the green light from Brussels: “This is a historic reform, of extraordinary relevance. Just think of the number of people positively affected: 11 million pensioners and all those who later, that is to say the vast majority people on the labor market at present, will be retirees. And above all, we give young people a reference in the medium and long term”did he declare.
“Not only are we making the system absolutely robust and sustainable, but we’re doing it with very strong elements of intergenerational equity.”
José Luis Escrivá, Minister of Social Security in Spainon franceinfo
The two main unions of employees, UGT and Workers’ Commissions, signed this Wednesday, March 15 an agreement, described as historic, with the government of Pedro Sánchez. For their part, the CEOE – the main employers’ organization – and the right-wing parties, including the PP, reject this reform head-on. They believe that it is done at the expense of companies and employees. The Council of Ministers approved the text on Thursday March 16, which will then be debated in Parliament. Government partners should normally provide support.
In Turkey, a text approved by the population
In Turkey, the situation is atypical: the recent pension reform, enacted in December 2022, is popular. Thanks to her, the government hopes to be able to win votes in the next elections. If the text is validated by the population, it is because the president Recep Tayyip Erdoğan To abolished the legal retirement age, set at 58 for women and 60 for men.
Many assets, who had started working young and who met the conditions for retirement – having contributed 20 years for women, 25 years for men – could not however claim it, stuck by the legal age. Recep Tayyip Erdoğan therefore wanted to reach out to them: “With the reform we are offering you today, approximately 2.25 million of our fellow citizens will gain the right to retire. No legal age will be imposed on them”, said the head of state. Millions of employees, five in total, who are so many additional potential voters. The first pensions will be paid in April 2023, one month before the elections.
Just after President Erdogan’s announcement, 700,000 people concerned contacted the social security services, the counters to which it is necessary to report, creating a real bottleneck. Such a rush that employees complained, forced to work overtime.
A special sector, called VIP according to the opposition press, has even been created. Faster, it allows you to register your rights and is reserved for people close to power. The level of pensions is not extraordinary. The minimum pension, set at 5,500 Turkish liras – around 280 euros – is lower than the minimum wage. On average it is a little less than 450 euros.
The government estimates the measure at 150 billion pounds, against two or even three times more according to independent economists. This represents 10% of Turkey’s budget. The opposition, meanwhile, accuses the government of emptying the coffers and putting the state in debt to win votes.