Social security ended last year with its negative equity. After six consecutive years closing the exercises with increasing deficit, the red numbers reached December 31, 2015 176 million, according to the general Social security account.
The Social security heritage approached 70.5 billion euros at the end of 2010. By the end of 2015, all those assets accumulated in the economic bonanza period had remained at 20.22 billion. A year later, in a new exercise in which the red numbers of the Institute of Foresight beat its own record of the previous year, all that heritage had already vanished. If it were a company, Social Security would be bankrupt. That's not the case. It supports the state and therefore is not at risk.
A test of this lack of danger is what happened two decades ago. Between 1996 and 2002, the Social security heritage was already on negative ground. He came to play ground in 1999, when he stood at least 11,003,000,000 euros.
The fall continues the equity balance of Social security is not the same as the annual accounts that are presented every year, and that in 2016 threw a deficit of about 18.6 billion. Although obviously between both ways of accounting the situation of the Institute of Foresight there is a close connection. The collapse of employment, wage devaluation and the steady increase in pension spending explain this situation, which will certainly be aggravated by the end of this year.
The dwindling Social security heritage has run in parallel with the reduction of the Reserve Fund. In the Pension piggy bank at the end of 2016 still accumulated about 15.2 billion, a lot less than the almost 70,000 that came to have before it began to consume at the end of 2012. The remnant will also be less at the end of the year, as the Ministry of Employment will have used some of that money to pay some of the extraordinary summer and Christmas.