Former Minister of Economy and Finance Isaac Alfie and deputy Conrado Rodríguez prepared a document with their vision of the consequences of the possible constitutional reform.
Former Minister of Economy and Finance (MEF) and former director of the Office of Planning and Budget (OPP), Isaac Alfieand the deputy of the Colorado Party (PC), Conrad Rodriguezthey prepared a joint document to be delivered to the National Executive Committee (CEN) of the political force, where the plebiscite to reform social security promoted by the PIT-CNT.
In the presentation of the statement, it is explained that the constitutional reform presented by the PIT-CNT and some sectors of the Broad Front (FA) intends to avoid this process, a deepening of the mixed system and “push the Uruguay “over the edge,” Montevideo Portal reported.
The Colorado report defends the constitutional reform of 1996 and warns that if the initiative of the trade union center is approved, there will be a “legal chaos” in the country with multimillion-dollar lawsuits against the Stateas well as loss of investment grade.
“The promoters of the reform intend, as a starting point, to repeal the mixed regime“, continues the text that assures that since the PIT-CNT “They are pushing to establish the minimum retirement age at 60 years, established almost 100 years ago by a law of 1925 (when life expectancy was 50 years and a few)”, when today it is above 80 years.
“Nobody knows how it will be financed”
“They also intend to assimilate the retirement either minimum pension with the national minimum wage“, the letter recalls and adds: “Beyond its cost, estimated by economists of different ideological orientations at more than 1,000 million dollars annually – 1.3% of the GDP -, which nobody knows how it will be financed, it is an invitation and an incentive to any future government not to adjust the national minimum wage, so as not to have to face expenditures that deteriorate the public accounts.”
On the other hand, they note that “with a replacement rate of 45%, any person whose nominal salary is less than 49,484 pesos will receive said minimum retirement salary, so the incentive to evade increases significantly.”
They also recalled that the Social Security Bank (BPS) indicated that the overall system deficit would fall by 4% of GDP, implying an additional 3.1 billion dollars.
Source: Ambito
