Spanish government to modify pension reform proposal

The Spanish government said on Wednesday it will increase more the value of pensions than previously announced in the pension reform proposal. The pension reform proposal aims at achieving the sustainability of the country's pension system adapting pensions to life expectancy. Pensions will increase by a minimum of 0.25 percent in times of economic crisis, as previously announced, however, they will increase by 0.5 percent plus the Consumer Price Index (CPI) in times of economic boom as opposed to the 0.25 percent plus CPI previously announced. The change announced on Wednesday will be introduced during discussion within the Spanish Senate, as it has already been passed within the Congress of Deputies. Spanish Minister of Employment Fatima Banez told reporters that pensions will always increase as they will rise at least by 0.25 percent in times of crisis, while in times of economic boom they will increase by the CPI plus 0.5 percent. In her opinion, the reform will improve pensioner's purchasing power. So far pensions had to be increased taking into account the CPI, but the government said a year ago that Spain could not afford to cover the full inflation rate in 2013 pensions. They announced instead that most pensions would increase by one percent while those earning a pension below 1,000 euros (1,342 U.S. dollars) a month would enjoy a two percent increase.