He Minister of Labor and Social Security, Pablo Mieres, warned that the consequences of the referendum PIT-CNT on social security reform include the multiplication by 4 of the increase in deficit, which is why he pointed out that “it leads to the collapse of the system.”
Mieres He expressed this when appearing before the Permanent Commission of Parliament to present the vision of Executive about the current mechanism and the possible risks of approving the PIT-CNT proposal, describing the collection of signatures as “demagogic.”
Regarding the sharp increase in the deficit, which would reach 8%, the minister considered that this would force “an increase in taxes or the contributions of workers and employers to social security”, while warning that “that would reduce the income of workers and would encourage informality”.
Among the possible effects after the approval of the plebiscite, Mieres listed that it would also cause “a fall in the employment and of purchasing power”, while “there will be a component inflationary.”
A “widespread confiscation” of $22 billion
During his speech, the leader referred to the fact that, if the plebiscite, there would be a “general confiscation” in the accounts of the AFAP, by assuring that “there are 22,000 million dollars that today have a name and surname.”
Regarding the proposal, which among the main candidates in the 24 elections so far only has the support of the mayor of Montevideo, Carolina Cosse, “It’s going to blow up one of the best social security systems in the world,” Mieres said.
For the minister, it will “substantially” tarnish the country’s international image. “It would affect the concept of Legal certainty, which is a construction of decades of Uruguay. “It is committing suicide politically, institutionally and it is generating the suicide of Uruguayan society itself with respect to how we do to support the elderly, who will continue to increase,” he concluded.
Source: Ambito
