Indexing or de-indexing, that is the question.

José Antonio Herce San Miguel

Since 2015, Spain has had a De-indexation Law (whose regulation was developed in 2017 by RDL) that decouples the price formation of goods and services (of sectors operating in the public sector) from general inflation (CPI) by linking it to the strict costs of each sectoral chain.

The de-indexation of pensions, salaries (subject to collective bargaining) and state debt is expressly excluded from this law. Paradoxically, since Lay 13/2013 on the Sustainability Factor and the Pension Revaluation Index came into force, the indexation of pensions was already regulated through the PRA.

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