Wednesday, May 2, 2007

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GOVERNMENT, EMPLOYERS AND UNIONS TO PLAY IN THE BAG THE PENSION

Press Attac Spain on the draft Law on the Government to invest in equities of the Reserve Funds Pension

The Government has reached an agreement with social partners (trade unions CCOO and UGT and CEOE, Cepyme) on the text of the draft bill to amend the Act regulating the reserve fund Social Security. Under the agreement, the Government is considering to launch and return of the money Reserve Fund pensions to private managers to diversify their investments to improve its "profitability."
Attac Spain wants to express its disagreement with the draft law, and alert the public about the likely consequences thereof. Therefore declare:
That the determination to invest in equities operations (ie, speculative) to 30% of the total assets of the Pension Reserve Fund, is a very serious decision that involves a financial risk to citizens' interests and we consider completely unaffordable.
On the other hand, Attac was voiced against the administration of the investment portfolio external public and want to do is put in the hands of private managers, ie banks and insurance companies. This would be a step towards a de facto privatization of public funds of the English and the strengthening of the big banks, giving room for maneuver, both economically and politically, difficult to control, despite precautionary measures are to be proposed. We have seen recently that these measures are always difficult to apply when it comes to defending citizens' interests.
This new assignment to the private sector fields of public administration, also mean that public funds will be used for profit managers of future charges arising from the handling of monies of the Fund and will involve hundreds of millions of Euros per year for companies, consultants and brokers benefit from this concession.
In short, they are once again the criteria of profitability and stock market which, according to the government and our social partners, is to prevail when it comes to managing the future of the "piggy bank" of pensions. A piggy bank of over 40,000 million euros - 4.1% of English GDP - we've been filling all the English and whose management, distribution of surpluses and control of these increasingly escapes the will and decisions of citizens. Meanwhile our country average levels remain worthless and indefensible pension and some unacceptable imbalances and deficits in social and economic resource distribution.
If the government persists in unilaterally approve this project will promote citizen mobilization Attac. A change of this magnitude in the financial use of pension funds in any case require a broad debate in society, asking what fate of English citizens want to give such large sums of money
Our alternative proposal to ensure the future pensions is the government correct the fiscal policies being carried out and to implement measures to increase the public purse. In this regard should be left to lower taxes on profits of large companies and transnational companies, which are multiplying their profits year after year. It should also increase taxes on the profits of finance capital and management resources to combat tax evasion and tax fraud measures that would ensure a significant increase in public spending.
that pensions are guaranteed and not endangered, it just depends on the political will of governments to implement tax systems fairer. In that sense if he were to be a deficit in public pension funds, this would be covered with items of the general state budget. Decent pensions are a right for workers, beyond the inter-satisfaction system, which must be guaranteed.

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