Daily Archives: December 2, 2012

Olli Rehn believes that revalue pensions will impact 0.5 percent of GDP

The Spanish government’s decision not to revalue contributory pensions will impact in 2013 of around 0.5% of GDP, said today the European Commissioner for Economic and Monetary Affairs, Olli Rehn.

“The decision shows that the Spanish Government is fully committed to meeting its fiscal targets,” Rehn said in a statement to a group of journalists.

Madrid’s announcement means that no contributory pensions are revalued with the data of November inflation, while in 2013 it will rise by 2% pensions of less than 1,000 euros.

Rehn considered that this decision “helps to meet budget targets this year and even more next year”, and calculated its impact on “around 0.5% of GDP” in 2013.

Olli Rehn, a vice president of the European Commission, said he hopes that Spain close the current year with a deficit of around 7%.

He said the EU executive will discuss the budget situation of Spain next February, and will take into account the country’s growth forecasts.

The commissioner recalled that after the decision that the EC took in recent months to ease adjustment schedules Spain and Portugal, the two countries “have a less acute need” to cut its deficit to meet its fiscal targets.

The objective is that the budget deficit of the two countries is below 3% of GDP that establish the Economic and Monetary Union in 2014, recalled.

Olli Rehn also said that France is taking “decisive action” to close 2013 below 3%.

On Greece, said the country’s debt buyback is “an important part of the overall package” agreed by the Eurogroup in Brussels on Tuesday to reduce Greek debt.

However, Rehn avoided could be removed as they would have to accept the private holders of Greek debt or what the figure for such repurchase is considered a success.

Rehn closed today a two-day stay in New York during which he participated in a conference of the U.S. Federal Reserve and met with financial analysts to explain the general situation in the EU and in particular in the euro zone.