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According to a report by experts from the Ministry of Finance (Geisha) released today with the reform of the pension system, Spain is one of the European countries with the highest percentage of pensioners in relative poverty risk, 19.3% behind only seven of the other 26 countries that comprise the European Union (Latvia, Cyprus, Estonia, Bulgaria, Lithuania, United Kingdom and Finland).

Also, remember that pensions in our country are “reduced” to the point that 77% of Spanish pensioners is not even to be mileurista. In this sense, Ghost explains that the Spanish average contributory pension represents 63% of the average pension in Europe.

On the other hand, the technical state of the Treasury that spending on pensions in Spain in proportion to Gross Domestic Product (GDP) stood at 8.9% during 2010 compared to 10.2% of EU average -27. Moreover, according to estimates published by the European Commission last week, Spanish spending on pensions will continue at levels below those of the EU-27 for at least two decades.

Regarding the impending pension reform, the group considers that the negotiation and approval must be “no rush” and subject to social partnership and the State Treaty that currently exists on this subject. “The need to remove uncertainty for investors in financial markets and reduce the spread of the risk premium on public debt does not justify the contrary,” they said from Geisha.

Finance Technicians suggested for maintaining the viability and sustainability of public pension system, among which the creation of a mixed system of financing, improving efficiency in tax collection through the fight against big bags fraud or development of incentives to voluntarily extend the retirement age.