They say the road to hell is paved with good intentions. One of them could be the decision to not freeze pension payments in order to go easy on retirees.
The truth is that increasingly high unemployment is having a negative impact on Social Security contributions, which for many months has been in trouble with the Treasury. These problems could grow worse by the end of the year. If inflation reaches 3.5%, the system will need around three billion euros in order to pay retirees their monthly pensions, and it will have to ask the state for help or dip into its emergency savings fund, which can only be used under certain circumstances.
Not freezing pension payments was a bad idea. At this point, even stricter measures could be applied.
