The pensions of the Basque Country would be bankrupt without the single Social Security fund
The pension system of Basque Country I would be bankrupt without the only Social Security box. It is the conclusion that can be drawn from the regionalized accounts that the Government elaborates on the principal pillar of the Welfare State.
With the data available until November 2019, the expenditure on contributory pensions in the Basque Country it amounts to 8,094 million euros, to which we had to add 397 million of the temporary disability benefits, maternity, paternity and other benefits. In total, the expenditure in the first eleven months of the year it amounted to 8,491 million euros.
However, the income amount only to 5,093 million euros, which means that without the rest of the State Basque pensions would have a deficit of almost 3,400 million euros. Most of the collection comes from social contributions, which are paid by employees and employers.
That is to say, that the Basque Social Security deficit without the single Social Security fund would be more than 4.5% of GDP until November 2019, pending the definitive growth data for the year 2019 and closing the budget execution of last year.
These data reveal that income in Social Security attributable to this autonomous community governed by the PNV, and which holds elections on April 5, only serve to cover approximately 60% of pension spending. Experts usually warn that this indicator is the most relevant to know the pension sustainability, which indicates that the intention of the PSOE to transfer the Social Security management to the PNV makes no financial sense.
Shout in the sky of the Social Security lawyers
In fact, as OKDIARIO advanced on Friday, the technicians who best know Social Security, the lawyers of this body, have just shouted in the sky after hearing the decision of the Government of Pedro Sanchez of transferring control of Basque pensions to the PNV. In a statement it has alerted the Government that the measure endangers the solidarity and equality of pension systems as a whole and only responds to political criteria.
The Social Security lawyers explain, first, that it is «a decision taken without the indispensable intervention of the Toledo Pact, forum of political and social consensus in the field of Social Security established within the Congress of Deputies with the primary objective of guaranteeing the public social protection system ». And they add that "a decision of this importance fully affects the provisions of Article 149.1.17 of the EC that grants exclusive jurisdiction to the State over basic legislation and economic regime of Social Security."