Spain’s Economy Minister Carlos Cuerpo has announced that pensions will rise automatically in 2027 under the statutory rule in force since 2021. He also said that the government could still adopt the necessary decisions if it were in a caretaker capacity from mid-December. Cuerpo made the remarks in an interview this morning on TVE.
He cited the revaluation rule enshrined in law, which links pensions each year to inflation. For the adjustment to take effect, a decision is traditionally required in the final Consejo de Ministros of the year, in the form of a Real Decreto or a Real Decreto-ley. The calculation is based on the final November consumer price index, which is routinely published on 15 December. By then, the government could already be in funciones and thus, in principle, restricted to the “despacho ordinario de los asuntos”.
Cuerpo said that, in his view, the pension adjustment could be adopted with legal certainty even in these circumstances. However, the final assessment would be for the Abogacía del Estado. He also noted that in previous years the statutory procedure had likewise been secured by Real Decreto-ley when timing required it.
As well as pensions, Cuerpo also discussed the statutory minimum wage (Salario mínimo interprofesional, SMI). Preparations for its next increase are currently being made by an expert group. According to Cuerpo, this decision too could be taken by a caretaker government if necessary, provided the legal requirements were met. He gave no specific percentages.
The fact is that pension indexation to inflation has been in force since 2021 and has been reaffirmed politically several times. The outstanding legal questions now concern whether, and to what extent, a caretaker cabinet may adopt new measures with financial implications. Cuerpo says this is possible; the final assessment, however, rests with the state lawyers and, where applicable, parliament.
For pensioners, the key question is whether the higher payments will be made on time at the start of the year. Politically, criticism is likely from the opposition, which regularly questions the use of emergency decrees during election periods. Operationally, the timetable depends on the swift publication and analysis of November inflation data by the Instituto Nacional de Estadística and on the formal adoption of the decision by the Consejo de Ministros.
Editor: Daniel Mayer (Article created with AI assistance).