Pension plan gets nod from Congress as early elections forecast

Congress on Thursday approved the government's controversial pension reform plan, which will raise the retirement age to 67 by 2027. The ambitious measure, the last of Prime Minister José Luis Rodríguez Zaptero's biggest reforms, was passed by the Socialists with support from the Catalan CiU nationalist bloc.

"I had the sensation that this was the last time I would get to speak at the podium during this parliamentary session," said CiU deputy Jordi Xuclá.

If the reform had been rejected, the government would have had to call back lawmakers in September. But now Zapatero, if he so chooses, can dissolve parliament at the end of September and call early elections in October. Another option would be holding elections in November with parliament reconvening in September to tackle the 2012 budget. There is no decision yet, but the government has officially said it will continue the parliamentary session until March.

The European Union has strongly recommended the pension reform plan.