90% of the pension fund has been invested in public debt

90% of the pension fund has been invested in public debt

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In 2008, the fund barely covered 55% of the country’s debt

Alert before the thinning of the Social Security reserve

The relaxation of the risk premium is insufficient: the interest is 5.11%

In the long term, analysts interpret that the tunnel is narrowing: the Spanish Social Security Reserve Fund empties by forced marches. These are the consequences of the country’s high public debt. As much as the risk premium makes efforts to relax, the Spanish 10-year bond was still registering yesterday rates of 5.11%, extraordinarily high …

Last year, the Executive of Mariano Rajoy had to invest 89.6% of the 65,000 million euros of the Social Security fund to cover the country’s public debt . And that had never happened. The fact is that such a situation is depleting the reserves of Social Security, one of the major problems facing the country’s economy in the long term. With these reserves, pensions are paid. And if there are no reservations, there are no pensions.

“In 2040,” says Alvaro Monterde, social security expert at March JLT, “Social Security benefits will not be anywhere near now.” Before, the maximum pension could reach 85% or 90% of the In 2040, the maximum pension will be between 1,000 and 1,500 euros per month. ”

The Wall Street Journal yesterday echoed the problem, using the figures that the Social Security department has offered in recent days. In November, the government withdrew 4 billion from the reserve fund: it was the second time in history that the public bank was on the verge of bankruptcy. The first time had been registered a couple of months before, when the Executive had had to collect another 3,000 million from the fund, in that case to cover needs that were never specified. Both withdrawals exhausted the annual legal limit, so the Government had to raise it temporarily.

Many readers will remember it. In those months there was talk of an imminent rescue . Something that, in reality, today has not occurred. In fact, the economic analysts are divided: some interpret that this rescue will not be necessary, given the corrective tendency that the main economic and financial indicators are taking. The risk premium, which had reached 638 points in mid-July, has been relaxed to the current 360 points.

These are relatively comforting data, but they are still very serious. The public debt absorbs a good part of the fiscal and financial adjustments that are taking place in the country. This is where the rest of the experts, those who consider that the Executive of Rajoy has to ask the rescue to Brussels. They think that it will be then when the risk premium falls back in a convincing and definitive way, to be below 300 points.

The situation is similar in many cases. There have been many countries that have been covered before future eventualities. In the years prior to 2008 – date of the beginning of the current crisis – Spain, Finland and France generated surpluses and strengthened their pension reserve fund. Thus, they were covered for the darkest days. The fact is that those bad times have arrived. And apparently, to stay for a long season.

As soon as the crisis took shape, many of those countries used those reserves to cover contingencies, including the interest rates that treasury bonds must pay. Ireland, for example, used a good part of its fund to invest in shares of nationalized banks and government debt, an intervention in which foreign investors would never enter.

Something similar has happened up to now in the Spanish case. For much of 2012, international investors have turned their backs on Spanish debt, which has had to be financed through national contributions. In the case of the Social Security reserve, its contribution has been increasingly high.

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In 2008, the fund barely covered 55% of the country’s debt. Last year, 90% of the fund has already been reached. While fund managers say the reserve has resources for the long term, skeptics frown. The latter have reasons to distrust: the rate of unemployment gallops unchecked, hovering around 25%, the population ages and the pyramid grows by its upper section and hardly create new jobs. It is estimated that there are currently two contributors for each pensioner, far from the recommended four contributors.

Related ‘Der Spiegel’ accuses Rajoy of “looting” the reserve fund of pensions to avoid the rescue Báñez: “We will use the Reserve Fund when it is necessary to pay pensions” The Government does not rule out using reserves again to pay pensions Social Security uses for the first time the prevention fund to pay pensions

Irish jobs market seeing a Brexit boost

Irish jobs market seeing a Brexit boost

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Trayc Keevans, the Global FDI Director of Morgan McKinley Ireland, says the availability of professional jobs increased by 11% in October

The availability of professional jobs increased by 11% in October of this year, compared to the same month a year ago, the latest Morgan McKinley Employment Monitor shows. 

Trayc Keevans, the Global FDI Director of Morgan McKinley Ireland, described the increase as a Brexit boost. 34% of the jobs created in October related to financial services and the main areas affected were asset management, compliance, financial control, risk management. “These are all functions associated with Brexit-related activity,” Ms Keevans said.

“The second biggest sector was the technology sector. This was less about market access and more about skills access. The ongoing uncertainty with Brexit in the UK is having an adverse affect on European talent in particular – people looking at the UK to live and work – and Ireland has been a benefactor of that,” she added. 

There is normally an increase in recruitment activity before Christmas, and while that is another factor at play, Brexit is the main reason for the increase in recruitment. 

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There has been a spike in contract activity. According to Ms Keevans that has largely been borne out by a lot of additional administrative activity for HR professionals in light of GDPR. The digitisation of the industry is also affecting their work load, as is Brexit, she added. 

Impeding the Brexit boost is the processing times for employment permits which are running five to six weeks for employers with the Trusted Partner Scheme, and longer for employers outside the scheme. 
The Trusted Partner Scheme is a government initiative that was brought in in 2015 to enable the fast-tracking of employment permits. The agreed target time was two weeks. The longer processing times are causing a backlog with employers. 

“There is also another effect on non-EA professionals coming here, and that’s the Irish Residence permit,” she explained. “There are delays of nine to ten weeks for individuals being able to get an interview to register with immigration, so we have a situation where professionals that are here and that have an employment permit and a visa to live here, but they don’t have a multi-entry visa because they can’t get the residence permit. It means there are people who are trapped here until they can obtain those.”

Ms Keevans said people who want to work in Ireland are becoming more aware of the housing crisis and rising rents in Ireland. “The most adversely affected are those middle-income earners and professionals who want to live near work,”she said. “That’s to the benefit of the regions, and that’s why we’re seeing a lot of people looking outside of Dublin for jobs. That’s been supported by the really strong investment that’s happening in the regions now. It means people no longer have to make a career sacrifice, they have less of a commute, and pay less for rent, but it is causing a problem for Dublin,” she added.

MORNING BRIEFS – Nissan and Mitsubishi shares have slumped in early Tokyo trade, after the arrest of chairman Carlos Ghosn. He is accused of under-reporting his income by $45m over five years. Mr Ghosn heads up the Japanese-French alliance between Renault-Nissan and Mitsubishi, an alliance that sold more than 10 million cars last year. The car makers are planning to remove him from his posts.

*** Building materials group, CRH has reported sales in quarter 3 rose by 4% year-on-year to €7.9 billion euro. Wet weather disrupted the group’s operations in the Americas, while momentum remained positive in Europe. CRH management is expecting favourable market conditions in 2019.

*** Airbnb says it will remove all homes in Israeli settlements in the occupied West Bank from its listings. The move has been welcomed by Palestinians but Israel has called it “shameful” and threatened legal action.

*** Fears of Brexit disruption have failed to deter passengers from booking flights next summer with EasyJet. The airline said today that half its seats were sold for the first half of 2019.


Montoro admits possible false invoices not detected to finance the 1-O referendum

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Montoro admits possible false invoices not detected to finance the 1-O referendum

The leader of Citizens, Albert Rivera, and the Minister of Finance, Cristóbal Montoro, have worked for the confrontation in the Congress. The referendum in Catalonia and the subsequent statements of both the minister and the president of the Government, which has been dedicated to that end. This issue has been translated into English for the provision of public funds, has replied that “there may be falsification of invoices” and another type of embezzlement, such as “opening a public enclosure for an illegal political act, for example. “

A revolver, with the investigations of Civil Guard that point in that direction led by the judge Pablo Llarena to request immediate explanations on this particular to the minister. The leader of the Citizens has ruined that of the court of the Embezzlement before the courts with the words of Rajah and Montoro denying the embezzlement, for which he has called for explanations: “It would be too much to ask that the Government stop making him a defense lawyer and tell the truth to the judges, “Civil Guard and the rest of Spaniards?”

“How can there be (falsification), in any administrative procedure?

Montoro has started his reply saying that he could not rule out anything: “discard, discard can be ruled out, except the need to be true to principles.” The ministry of government has been that of the Government of the Republic of China. And immediately, Montoro has demanded that Rivera read his interviews in the press, in particular the latest one published in El Mundo, in which he assures that “I do not know with that money”, nor the maintenance of Puigdemont. referendum could only have been due to a crime.

Montoro has put the accent on this thesis, which has admitted that it exist: “Can have, has sustained. Above all, “Catalonia is not independent of the actions of the Government of Spain”. So now the “actions of justice” are under way, but “if we had done the accounts, the separatists would have had hundreds of millions in their hands.” Now, “if they have falsified, they must answer for it,” the minister has warned.

Admits that “there can always be imperfections in the procedure of a state action”

The rotundity of other times has also been “imperfections in the procedure of a state action”, and he said. For the Minister of Finance, “that is democracy, the discrepancies”, because “the rest is dictatorial”. Thus, in the face of the Catalan question “we are doing a control”, but “there may be imperfections” in this proceeding, and he explained.

Montoro has also had the occasion to make a guilty for accustoming him as an alibi for Puigdemont. “That already is fantastic,” he snapped. “Mr. Puigdemont,” he replied, “because we are doing our part,” he said.

According to the minister, “it is not that the Government is collaborating, but that it is promoting” the investigation on the financing of the 1-O

Montoro has claimed that “do not do more interviews” because “Judge Llarena will thank you and the Civil Guard also. “And in reply, Montoro has” I always not say you “. The minister recalled that “I have done many times in my political life because you have to do priority when you do not want to do.”

After this, Montoro recalled that in his interview in El Mundo points to a possible crime of forgery and that is why an investigation is under way, and that “it is not that the government is collaborating, but that it is driving” that investigation.

Pere Aragonés (ERC), remember that “Montoro has all the accounts of the Generalitat” and therefore also ” indication “of expense or falsification of invoices to finance the referendum, so they regret that the minister’s suspicions are launched” without any proof or foundation “.

The Ministry of Economy remembers that “Montoro has all the accounts of the Generalitat” and therefore also “access to invoices and all the files”


No to racist, homophobic acts at Manchester Pride

UK Black Pride – Europe’s biggest community-led, not-for-profit support group for African, Arab, Asian and Caribbean lesbian, gay, bisexual and trans people – is proud to have confronted racism and homophobia inside and out of the Black and LGBT communities for the past eight years. This is why we are deeply troubled to have learned that the organizers of Manchester Pride have made a bizarre decision to book a racist, homophobic act that goes by the name of ‘Queens of Pop’ to perform at their community Pride event this August. You can form your own opinion by checking out Mai Sabai’s blog about this.

UK Black Pride has written to the organizers of Manchester Pride to register our disagreement with their invitation for the Queens of Pop group to perform. If you agree with us that the Queens of Pop act’s substance and material is offensive then please take two minutes of your time to write a letter (or copy and paste the model letter we have presented below) and send to Manchester Pride via this link: http://www.manchesterpride.com/contact/ You could also help to share this email among your friends and networks. The more pressure we can bring to bear down on the organizers of Manchester Pride, the more likely we are to be able to secure zero tolerance to racism and homophobia.


Having never heard of this group before I have watched their video: https://www.youtube.com/watch?v=TD8e4CMJbBI and find it extraordinary that Manchester Pride- a high profile community LGBT organisation – would choose to associate itself with performers and material that has clear racist and homophobic connotations.

Black face is a form of entertainment based on crude racist stereotypes which has, over the centuries, disseminated a view of black people that mocks, dehumanises and encourages violence against them (see http://black-face.com).

This Queens of Pop video is not ironic. It is a cheap attack on a famous man, Will.i.am, using language that would not be out of place at a BNP, EDL or KKK rally. It is plain old-fashioned homophobia, mixed with some of the oldest and most pernicious forms of racism using the mask of ‘ironic entertainment’ as cover. It also jokes about Will.i.am being a rapist.

As a community Pride organisation you have a clear responsibility to support and represent the diverse communities in all that you do, including who you ask to perform, especially as many of your audience will be experiencing racism and homophobia in their day to day lives.

If you allow Queens of Pop to perform, the message that booms out loud and clear is that you are happy to support racist, homophobic acts and material, that Black LGBT people are not welcome, respected or safe from ridicule at your event or in your organisation.

I ask that you take the only sensible decision available to you and, uncomfortable as it may make you at the furore it has caused (including opposition from UK Black Pride, the most representative and successful Pride event for Black LGBT people in Britain), remove the Queens of Pop act from your event with a clear public statement reasserting your commitment to the diversity of LGBT people you serve.