In dialogue with Channel E, Eugenio Seminoan advocate for the elderly, analyzed labor reform and claimed that without a shared vision with the pension system, the Social Security funding crisis will worsen.
The labor reform raised another alarm in the pension system. It is estimated that ANSES could stop collecting around $2.5 billion in pension funds. For SeminoThe problem is not just the quantity, but also the approach. “Let’s start with the end of the film: It seems nonsensical to me” he noted, asking whether closely related reforms would be discussed separately.
The expert recalled that there was originally talk of a simultaneous labor market, tax and pension reform. However, the pension was downgraded. “The pension plan was left behind and now there is talk of winding it down at the end of next year or sometime at some point“, he warned, citing the lack of long-term planning.
A system tied to work and taxes
Semino He explained that Argentina’s pension system is based on a delicate balance. “We have a supported distribution system: 50% comes from contributions and the other 50% from tax contributions.“, he explained. Therefore, any change in employer contributions or taxes has full impact on social security.
In this context, he warned that the system is already in a critical situation. “We are talking about a system that is already fraught with very serious difficulties, which are reflected in the misery suffered by our pensioners and pensioners.“he explained. For the defender of the elderly, the deterioration concerns different administrations and cannot be solved with isolated measures.”The reforms do not solve the problem of the present, they are for the future“, he clarified, but emphasized that they must be carried out correctly.
Rushed reforms without social consensus
Another key point was the lack of an interdisciplinary debate. “Work cannot be separated from taxes and social security.” he insisted Semino. He even focused on VAT, one of the main taxes that finances the system. “The VAT is the most regressive tax and the one that funnels the most money into the pension system“, he noted, warning that touching without in-depth analysis can make the situation worse.
Because of his academic experience, he was energetic: “Reforms take time; they will not be implemented in a few commission meetings“And he added that they must be carried out in front of society.”If not, then suggestions come that don’t solve the problem, but rather make it worse.“, he warned.
Finally, he acknowledged the political need for the executive to move forward, but he marked a clear limit. “Pension reform is not carried out for one year, but with a view to 10, 20 or 30 years, to a future generation.“, he concluded.
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