Zapatero to sign ambitious social pact on Wednesday

One day after the government reached a historic pact over pension reform with labor leaders, Prime Minister José Luis Rodríguez Zapatero will sign an ambitious and far-reaching social and economic pact with employers' groups and the unions at a ceremony on Wednesday, government sources said Friday.

The signing ceremony will take place at the prime minister's residence La Moncloa.

The Cabinet approved the pension reform package, which will allow persons with 38.5 years in social security contributions to retire at age 65. The accord was hammered out early Thursday by the prime minister and the leaders of the UGT and CCOO unions.

Deputy Prime Minister Alfredo Pérez Rubalcaba said Friday that the social and economic pact the government is aiming for will allow all sectors to negotiate in other areas, such as research and development, energy policies and labor reform for the future. "Although there are still things to do, the government is satisfied with the agreement," he told reporters. The Socialists are lobbying the main opposition Popular Party to join the pact.