Col·lectiu Emma - Explaining Catalonia

Tuesday, 8 january 2013 | The Wall Street Journal


Recommended: "Spain Drains Fund Backing Pensions" (The Wall Street Journal)

We recommend the article "Spain Drains Fund Backing Pensions" by David Román published in The Wall Street Journal.

Some excerpts: 

Spain has been quietly tapping the country's richest piggy bank, the Social Security Reserve Fund, asa buyer of last resort for Spanish government bonds, raising questions about the fund's role as guarantor of future pension payouts.

At least 90% of the €65 billion ($85.7 billion) fund has been invested in increasingly risky Spanish debt, according to official figures, and the government has begun withdrawing cash for emergency payments.

In November, the government withdrew €4 billion from the reserve fund to pay pensions, the second time in history it had withdrawn cash. The first time was in September, when it took €3 billion to coverunspecified treasury needs.

Together, the emergency withdrawals surpassed the legal annual limit, so the government temporarily raised the cap.

This article has also been published in German on the Der Spiegel web site. Link here

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Col·lectiu Emma - Explaining Catalonia

Col·lectiu Emma is a network of Catalans and non-Catalans living in different countries who have made it their job to track and review news reports about Catalonia in the international media. Our goal is to ensure that the world's public opinion gets a fair picture of the country's reality today and in history.

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Col·lectiu Emma - Explaining Catalonia