Spain to scrap free medicine and charge higher student fees

Spain’s cash-strapped government yesterday approved reforms to scrap free medicine for pensioners and charge students higher fees, aiming to save an extra €10 billion a year.

The reforms tread on sensitive ground since Prime Minister Mariano Rajoy had promised to safeguard pensioners’ purchasing power. Cuts in health and education have already sparked street protests.

Health Minister Ana Mato and Education Minister José Ignacio Wert announced the reforms after a weekly Cabinet meeting as the latest efforts to stabilise Spain’s public finances, a big source of concern for the eurozone.

“Healthcare needs certain reforms to guarantee its sustainability,” Ms Mato said. “We know that for some citizens it is a difficult reform and demands sacrifices, which we want to be fair ones.”

Traditionally Spaniards do not pay to visit the doctor and only pay part of the cost of medicine, with an exception for pensioners who currently pay nothing.

Now pensioners will have to pay 10 per cent of the cost at the pharmacy, up to a maximum of €18 a month depending on their income. Spaniards in employment will see their contribution rise from 40 to 60 per cent of the cost of the medicine.

The government said €3 billion will be saved through education reforms, allowing regional governments to expand class sizes by 20 per cent and raise university fees to an average €1,500 from €1,000.

Spain’s 17 regional governments account for more than half of all public expenditure because they are responsible for funding health, education and social care.