The Central Government has raised the percentage of public-pension-fund reserves used to buy government bonds to 97.5 percent. This is a 7-percent increase on the previous figure of 90%.

We’re talking about 63,000m euros (63 billion, if you prefer), which represents 5.93% of the Gross Domestic Product. Just over 62,000m euros is invested in public financial assets, of which 58.5m euros correspond to national debt and only 2.54% in German, Dutch and and French public debt.

The Minister for Employment assured that it was “in no way dangerous” that 97% of the Reserve Funds for Pensions are tied up in this manner, however, not everybody agrees.

The Secretary General of the national workers union, CCOO, Ignacio Fernández Toxo proposes instead that there should be a temporary increase in Social Security payments to avoid falling back excessively on the Reserve Funds. He considers that Social Security no longer takes enough money to cover pensions.

According to figures released by the Ministry of Employment and Social Security during the first two months of the year, the payout reached 15.329m euros, representing a 4.75% increase on the same period of the previous year. On the other hand, money received via Social Security contributions was 14.370m euros, which was nearly 3% down on last year. This difference, he points out, represents almost a 1,000m-euro shortfall.

Food for thought, obviously.

(News: Spain)