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OECD Urges Spain to Extend Pension Calculation to 35 Years in New Economic Review

The review warns that rapid ageing could push debt toward 135% of GDP by 2050 despite stronger near‑term growth.

Overview

  • Presented in Madrid by Mathias Cormann and Economy Minister Carlos Cuerpo, the OECD lifts Spain’s growth forecast to 2.9% this year and 2.2% next year, with 1.8% in 2027.
  • The OECD calls for expanding the pension reference period to 35 years, avoiding further hikes in social‑security contributions, and introducing mechanisms linked to rising life expectancy.
  • The report says ageing will raise spending on pensions, health and long‑term care, cautioning that public debt could climb to about 135% of GDP by 2050 without additional reforms.
  • The fiscal package proposed includes harmonising VAT and cutting exemptions, aligning diesel and gasoline excise duties, strengthening energy and vehicle taxes, and easing the tax load on low‑income households.
  • Recommendations also target stronger active labour policies and training, curbing long‑term sickness absence, incentivising older workers, simplifying work‑visa and qualification recognition, expanding early integration support for migrants, and enforcing a robust anti‑corruption plan including lobbying rules and tougher application of the OECD Anti‑Bribery Convention.