Spanish Cabinet OKs raising retirement age to 67

Spain has approved a plan to raise the retirement age by two years to 67 for most workers, a key structural reform aimed at reassuring markets fretting over the country`s finances.

Madrid: Spain has approved a plan to
raise the retirement age by two years to 67 for most workers,
a key structural reform aimed at reassuring markets fretting
over the country`s finances.

The latest bitter medicine for a once-booming
country now struggling to crawl out of recession got the green
light today at a Cabinet meeting.

The proposal is backed by labour unions, which is a
victory for Spain`s Socialist government. The government is
ruling over a struggling economy with a jobless rate of 20.3
per cent and trailing conservatives badly in the polls with
general elections just over a year away.

The reform still needs approval by Parliament,
although Prime Minister Jose Luis Rodriguez Zapatero`s
Socialists have lined up support up from small regional
parties to pass the measure.

PTI