It has been confirmed. Spain's Social Security program will end the 2011 fiscal year with a deficit of 668 million euros. This amount equals 0.06% of the national GDP, which is 0.02% higher than was originally predicted according to data provided by government spokesperson Soraya Sáenz de Santamaría in a report presented by the Minister of Employment.
Social Security going into a deficit recalls 1996, when the recently-appointed government of José María Aznar had to ask for aid from the central bank in order to pay pensions.
Pension piggy bank
This time around something similar will happen, according to various sources consulted by elEconomista. Despite the fact that the Social Security Reserve Fund, also called the "pension piggy bank" (hucha de las pensiones in Spanish) and endowed with more than 65 billion euros at this time, was created in order to "alleviate the effects of troughs of economic cycles" and guarantee federal pensions. At this time the goal is to cover shortages by adjusting the budget.