The Spanish government insists that it will not freeze pension plans, contradicting earlier reports from Reuters.

When asked whether the Spanish government is studying a freeze on pension plans, deputy Prime Minister Soraya Saenz de Santamaria answered that the country's finance ministry has categorically denied that option. She pointed out that the President said that pensions would be the last thing he would touch.

A government official said that the possibility is not even being studied, according to Spanish daily Expansion.

On Friday morning, European Commission Vice President Joaquin Almunia said that he has no record of that possibility being considered.

Note that pension payments are reviewed every year and adjusted to inflation. A freeze would keep those payments the same.

MG

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