MADRID, (Reuters) – Spain’s government reached an agreement with unions in order to increase social-security contributions 0.6% by 2023 to 2032 to pay for the retirements of a new wave of seniors. This was announced Monday by the Social Security Ministry.

Spain witnessed a boom of births during Francisco Franco’s rule, ending in 1975. State finances are now under increased strain because people who were born in that period will soon be retiring.

Three-way talks that took place over several weeks between the government and unions as well as businesses have met at a deadlock because of the magnitude of the proposed increase.

Cepyme, which represents large and smaller companies respectively, had abandoned negotiations earlier Monday. The CEOE and Cepyme associations, representing both small and large businesses, claimed the plan would place too much pressure on employers and harm job creation.

The unions stated that employers would contribute 0.5% more and workers 0.1% less.

Spain’s agreement to pass the pensions reform was part of the condition that allowed the European Commission and Spain to release billions in recovery funds.