MADRID Nov 30 Spain on Friday announced it
would raise state pensions by 1 percent to compensate for price
increases this year and unlock a pensions reserve fund to ease
"In January 2013, pensions will be reviewed by 1 percent but
pensioners who receive less than 1,000 euros a month will get a
review of 2 percent," Spain's Deputy Minister Soraya Saenz de
Santamaria said at a news conference following the weekly
Under Spanish law, pensions should be reviewed each year in
line with the inflation data of November, which emerged at 2.9
percent on Friday.
Saenz de Santamaria also said a new law had been passed to
unlock the state pensions reserve fund and ease liquidity
tensions around pension payments until the end of the year.
Labour Minister Fatima Banez said the review should not
prevent Spain from meeting its deficit target of 6.3 percent of
Gross Domestic Product this year.