The Spanish Social Security : Prospects of the Pension and Health-Care Systems

The social security system in Spain has steadily expanded since the late 1970s. Currently, social security expenditure exceeds 15 percent of GDP, being a factor of fiscal imbalance. This paper reviews achievements and the current situation of the social security system, discusses changes in the financing of health-care expenditure in view of the need for fiscal consolidation by the general government, and analyzes the scope for a partial prefunding of future liabilities of the pension system.