(Reuters) - Spain is considering freezing pensions and speeding up a planned
rise in the retirement age as it races to cut spending and meet conditions of an
expected international sovereign aid package, sources with knowledge of the
matter said.
The pension measures would save at least 4 billion euros a year as well as
fulfill European Union policy recommendations issued in May which senior euro
zone sources said were being used as a blueprint for the terms of a sovereign
aid program.
The accelerated raising of the retirement age to 67 from 65, currently
scheduled to take place over 15 years, is a done deal, the sources said. The
elimination of an inflation-linked annual pension hike is still being
considered.
Spain is hesitating to apply for external aid to handle a high public deficit
and soaring debt. Its borrowing costs
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