Spain considers pension reforms with aid package in sight

[dipsydoodle]

Source: Reuters

(Reuters) - Spain is considering freezing pensions and speeding up a planned rise in the retirement age as it races to cut spending and meet conditions of an expected international sovereign aid package, sources with knowledge of the matter said.

The measures would save at least 4 billion euros a year as well as fulfil recommendations in a European Union document released in May which senior euro zone sources said was being used as a blueprint for the terms of a sovereign aid programme.

The acceleration of the raising of retirement age to 67 from 65, currently scheduled to take place over 15 years, is a done deal, the sources said. The elimination of an inflation-linked annual pension hike is still being considered.

>

The new pensions steps, which could be announced as soon as next week along with the 2013 budget, would send a strong signal to investors that Spain is serious about implementing structural reforms it has delayed because of the political cost.

Read more: http://uk.reuters.com/article/2012/09/21/uk-spain-pensions-idUKBRE88K07Z20120921

[jtuck004]

1. "... would send a strong signal to investors ...". Since Spain is in the top 5 of EU

"... As is shown in Table 1, Cyprus, Ireland, Spain, Portugal, Greece and the United Kingdom are identified as the countries with the highest poverty risk for the elderly population ..."

Here.

This also sends a signal that those under the bus will soon be joined by millions of others.

But as long as the wealthy are supported, it follows that the benefits should trickle upon everyone else, eh? QE3. Sorry, I mean Q.E.D.