Inda advises PP to lie about pensions during election campaign: "Let them shut up until they form government"

Spanish Economy Minister Carlos Cuerpo has stated that the government could approve an increase in the minimum wage even before the upcoming general elections, or the caretaker government could make the decision after the election day. This move has sparked criticism from the Confederation of Spanish Business Organizations (CEOE), with its president, Antonio Garamendi, leading the charge against the government's actions during the electoral campaign. Garamendi expressed disbelief that the government would use its power during the campaign to act in a manner he does not understand. His criticism adds to the usual concerns raised by the business association regarding the lack of trust in the commission of experts preparing the initial proposal for negotiations and the absence of price review clauses in public contracts based on these increases. Garamendi criticized the labor minister, Yolanda Díaz, for calling upon individuals who have never held employment to serve as experts on the minimum wage. The group of experts tasked with proposing the raise is set to submit their recommendations by the end of this month. Trade unions have requested a 7 percent increase in the minimum wage, which would push it above 1,300 euros gross per fourteen pays for next year. Their calculation is based on a 2 percent loss of purchasing power this year plus an additional 5 percent needed to reach 60 percent of the average salary next year. In the last two legislative periods, the business sector only agreed on one occasion to raise the minimum wage, back in 2020. Since then, there has been no consensus despite efforts made by the Ministry of Labor. With an accelerated schedule, reaching an agreement among all three parties seems more challenging. The experts will present their proposal by the end of the month, after which negotiations with the business sector and trade unions will begin. The ministry will control the pace of these discussions. Regardless, if the government wants to approve the increase before the elections, the negotiation process will need to be very fast-paced. There is a commitment from the government to the trade unions that is likely to be broken again, namely prohibiting bonuses from being absorbed by the minimum wage increases. Given the current calendar, accelerating the approval of the raise would also necessitate a swift incorporation of this prohibition. Eduardo Inda advised the People's Party (PP) to lie about pensions during the electoral campaign, suggesting they remain silent until forming a government. Inda's comments were controversial, highlighting his known relationship with truth. He suggested that the PP should hide its true intentions regarding pension policy. The PP warned this week that the pension system "will collapse" and announced "bold" measures to reform it, which Inda urged them to conceal. The specter of pensions has once again pursued Alberto Núñez Feijóo, leader of the PP. During the 2023 electoral campaign, Feijóo was caught on live television lying about the PP always raising pensions in line with inflation. Four years later, the party finds itself struggling to construct a clear message on the issue and instead floats vague statements. For the first time, a PP official openly spoke about the need for change, causing unrest. Ester Muñoz, spokesperson for the PP in the Congress of Deputies, stated that the model must be changed because the system "will break." Her remarks were corrected by Feijóo, who sought to calm the situation. Although Feijóo did not deny reforms, he emphasized that pensions would be guaranteed under his leadership. Sources within the PP attempted to reassure the public, stating that pensions would be paid, increased, and guaranteed. In Spain, the Social Security system pays nearly 6.8 million pensions for retirement, averaging 1,576.1 euros monthly. Overall, the system pays 10.5 million pensions to over 9.5 million people, with an average of 1,374.6 euros per month, according to September data from the Social Security. Pensioners are a sensitive and influential demographic in the upcoming general elections on November 29, and the PP does not want to alienate them. Recent surveys indicate that pensions are not among the main concerns of the population, including retirees or those nearing retirement age. The government of Pedro Sánchez welcomed the confusion surrounding the PP's stance on pensions as a fresh breeze. Vox, a far-right party, has gone further, with José María Figaredo advocating for a mixed pension model. The party proposed initiating the process of capitalizing a public pension fund with private profitability criteria, citing the current system as unsustainable. However, both Abascal and Feijóo have sought to correct their own officials' statements due to fears that discussing pensions might affect the outcome of the November 29 elections. After the controversy caused by Figaredo's comments, Abascal tried to calm the debate, stating that if Vox governs, pensions in Spain would be paid "whatever the means," through one system or another.