Pensioners took to the streets to protest over the Government announcement on state pensions, which will mean cuts of between 382 and 540 euros a year.
One Spanish daily quotes the case of a 69-year-old cleaning lady who religiously paid her Social Security payments – her mother-in-law paid them when she couldn’t – who gets by on 582 euros a month from her state pension. Also thanks to recent Government legislation, she has to pay around 15 euros a month in medical prescription bills.
Another man, who worked for 42 years in a factory that made cogs but was then laid off when he was 53. He was unable to find work and retired at 60 (ten years ago) with a 30% reduction on a full pension because of this involuntary, early retirement.
These were just two of the 200 pensioners who demonstrated in front of the Social Security offices in Madrid. Similar demonstrations were held in Cataluña, Extremadura, Navarra and La Rioja.
Pensions are supposed to go up in line with the official rise in the cost of living; i.e., the IPC. The Government normally makes an adjustment, a one-off payment to pensioners at the end of the year, somewhere between 186 euros (pensioners in Galicia) and 274 euros (pensioners in País Vasco), which will not be paid this year, however.
This is just the last announcement by the Rajoy Government that directly contradicts their electoral pledges and repeated assurances since coming to power. Prime Minister Mariano Rajoy and his ministers appeared to have deliberately mislead the Spanish public on cuts to health, education and pensions.
The chief opposition leader correctly predicted with irony that Sr. Rajoy would announce that he would not be meeting his obligation to keep pensions in line with the IPC until after the last of the regional elections were over – Right on cue, immediately after the last such elections, which were held in Cataluña, the Central Government made the announcement that with regret it would have to go back on their previous pledge.
Lastly, the Central Government has also recently announced that the set minimum wage would go up by four euros a month in 2013, after it was frozen during 2012. Unfortunately, the cost of living has risen by 4.6% in the last three years, so this 0.6% will represent a loss in purchasing power. In effect, somebody who receives the set minimum wage of 641.40 euros a month will see it ‘surge’ to 645.30 euros a month as of next year.
Anybody who has bought a bottle of butane gas, filled their gasoline tank, received an electricity bill, or witnessed the affect of the IVA increase on just about everything, will know that those four euros will not make much of a difference to their economical plight.
(News: Spain)