Sánchez reproaches the PP for lowering taxes “is not a country project” and insists that pensions will be revalued according to the CPI
The war is having an impact on the world economy that Spain will not be spared. This has been recognized by President Pedro Sánchez, who confirmed that “there will be a downward revision of GDP in Spain, as in Europe and in the world.” Of course, Sánchez pointed out that Spain will continue to grow “at a good pace”, but below the forecasts sent to Brussels, which estimated a GDP growth of 7% this year and 3.5% next year. Therefore, the goal of ending the year having already recovered pre-pandemic economic levels is moving away.
One of the direct consequences of the war in the pockets of the Spanish is the high inflation, which ended the month of March at 9.8%, the highest rate in four decades. In the Antena 3 interview, the president blamed this large price rise on the war and energy: “70% of the rise in prices is explained by energy and unprocessed food,” argued Sánchez, who also indicated that The United States or Germany are also registering inflation rates “above 8%”.
And despite the large rise in the CPI, the President of the Government was firm in the decision to revalue pensions next year based on the new formula recently approved in the reform and which is based on average inflation for the year, although this could rise to 7.5%, according to the estimate made by the Bank of Spain. “It is not a political issue but it is written in the law,” explained Sánchez, who reiterated, as Minister José Luis Escrivá had done on previous occasions, that pensions are guaranteed their revaluation in accordance with the reform made by the Government of Spain and the law.
However, he did seem to rule out that the salary of civil servants will rise in 2023 based on this expected inflation of 7.5% and linked this rise to the income agreement that unions and employers are negotiating, although for the moment with few signs of reaching an agreement, since the CEOE rejected the last proposal of the unions and is reluctant to include the salary guarantee clauses that they demand.
In any case, the head of the Executive trusted that this “agreement can come to fruition soon” and that it also includes not only the evolution of salaries, but also decisions on dividends and the distribution of profits.
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