Friday, 22 August 2014

Spain Dips 37% Into Social Security "Piggy Bank", Fund Depletion in 4 Years at Current Rate. Worried?

'The Government of Mariano Rajoy has released 24.65 billion euros of the Social Security Reserve Fund in less than two years. Such amount represents nearly 37% of the total 66.815 billion fund accumulation. That figure marks the highest cumulative piggy bank draw-down in history, following its commissioning in 2000 and after eleven years in which successive governments did not need to dip into it.

The situation changed dramatically with the height of the crisis. The current government has broken into the social security bank twelve times since 2012. The total amount withdrawn exceeds 24.6 billion euros while 54.69 billion remains.

This implies "at the current depletion rate, in a period of four years or so, the fund would be exhausted".'

Time to panic?

1 comment:

David Preiser said...

At least there will be less income inequality, right?