The PP stumbles again with pensions a month and a half from 29N and Vox gives the recipe: privatize them

The Spanish government has halted its initial plan to sell all properties owned by Muface, a public entity responsible for managing pensions for civil servants, in order to fund pension payments following the eviction of the late Maricarmen Abascal. The strategic plan had aimed to sell Muface’s entire real estate portfolio over the coming years to address financial obligations to pensioners, but this has been revised through a new decree. According to a spokesperson for the Ministry of Digital Transformation and Public Function, instead of selling the properties, management will be transferred to Casa 47, a state-owned company under the Ministry of Housing. Muface will retain ownership, contrary to the original plan known as Plan Muface Avanza 2 2026–2028. The ministry, led by Óscar López, has revoked its authorization for Muface to liquidate its real estate holdings within the next two years, which was intended to capitalize on rising property prices and generate resources. This decision follows a strategy approved at the end of 2025 by Consuelo Sánchez Naranjo, the secretary of state for Public Function, which called for the appraisal and sale of Muface's property assets by autumn 2026. These properties, including 90 homes, garages, and commercial spaces, are legally designated solely for funding the Special Fund’s benefits, which pays pensions for public employees and their heirs covered by mutualities established before Muface’s creation in 1975. The Special Fund requires annual injections from the state to meet its obligations, and selling properties at favorable prices would reduce the need for public aid. Initially, the state-owned company Segipsa was tasked with handling the operation, but the approach has changed significantly. A ministry spokesperson noted that the strategic plan predates the royal decree law currently awaiting validation by the Permanent Deputation. The new decree, supported by the PNV, allows Casa 47 to manage the properties and use them for affordable housing policies while maintaining Muface’s and the Royal Patronages’ ownership. This shift highlights the government’s evolving stance on public housing stock. Previously, the goal had been to maximize returns on property assets during a period of high prices, but since the eviction of Maricarmen Abascal, the focus has shifted toward retaining properties within public entities. While Muface has held auctions in recent years, the strategic plan represented a major step toward full asset sales. This plan aligned with efforts to reduce the public deficit but conflicts with the current political position of the PSOE, which opposes profiting from housing during an election campaign. Similarly, the so-called bad bank Sareb has moved away from trying to sell its real estate and land holdings, transferring much of it to Casa 47. However, the state recently awarded a contract worth 52 million euros to Aliseda, a subsidiary of Blackstone, to manage Sareb’s housing stock for the national public housing park. Meanwhile, discussions around pensions have intensified less than a month and a half before the general elections. The Popular Party (PP) has returned to the issue, with its spokesperson, Ester Muñoz, warning that the pension system is at risk of collapse and calling for bold measures to ensure its sustainability. During an interview on the Quórum podcast, she highlighted that retirees who left the workforce earlier receive higher pensions, but the salaries supporting these pensions are low. She also referenced demographic data showing a widening middle section of the population pyramid and a shrinking base due to low birth rates and increased life expectancy. The PP faces challenges in clarifying its stance on pension reforms, particularly after past controversies. Last year, President Alberto Núñez Feijóo claimed his party always adjusted pensions according to inflation, but this was later refuted, damaging credibility among voters. Recently, Economy Minister Carlos Cuerpo urged the PP to clarify conflicting messages regarding the pension system’s future. He criticized the PP leader for suggesting the pension model might collapse, contrasting it with Feijóo’s commitment to ensuring the system’s viability for younger generations and maintaining pension increases in line with inflation. The aging population, the retirement of the baby boomer generation, and low birth rates pose ongoing challenges for Spain’s pension system, which relies on three main funding channels: contributions from workers, general taxation, and state subsidies. Despite these pressures, successive reforms, including flexible retirement options and equity mechanisms, have brought some stability. An analysis by Comisiones Obreras (CCOO) and the Foundation 1º de Mayo warned of the growing elderly population and the limited impact of immigration on demographic balance. However, the Federation of Applied Economics Studies (Fedea) noted improvements in the system’s sustainability in its September report. In Algeciras, the PP and Vox have signed a motion of censure against Mayor José Ignacio Landaluce, who faces allegations of sexual assault. Twelve PP councilors, who previously served in Landaluce’s administration, along with four Vox members, have formed a coalition to push for his removal, proposing Jacinto Muñoz as his replacement. The PP regional president, Bruno García, confirmed the agreement, stating that Muñoz, the former deputy mayor, is widely supported as the candidate. The PSOE has offered its votes to the PP for several years to remove Landaluce from office, though he has remained defiant despite the allegations and calls for resignation from the PP.