The Hellenic Radio (ERA): News in English, 10-07-07

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From: The Hellenic Radio (ERA) <www.ert.gr/>

CONTENTS

[01] EU: One-Way Road Rise in Retirement Age

The EU Commission released a report on Wednesday indicating that rise in retirement age in all EU member states is one-way road to ensure viability of pension system. The report was drawn in view of the opening of a Pan-European public talk on how to ensure sufficient, viable and guaranteed pensions. This is the so called "green bible on pensions" which is a joint initiative of Commissioners Laszlo Andor ( Employment and Social Affairs), Olli Rehn 9Monetary Affairs), and Michelle Barnie (Internal Market and Services)

Necessary Reforms in Greece

The EU commission report says that four people aged between 15-64 worked for each EU citizen 65yo and above but this number will drop to two people working for one till 2060.

Referring to Greece, the Commission predicts that Greece in 2060 will be bear the highest state expenses for pensions after Luxemburg unless reforms in the pension system are carried out. Specifically state expenses for pensions in 2060 will come up to 12.5% of GNP compared against the average 2.7% of GNP in the eurozone and 2.2% of GNP in EU 27 member states.

According to the EU Commission the debt crisis and huge deficits in many EU member states exercise the biggest pressure to European governments for reforms in social security and pension systems

"The present situation is not viable. Our option is poorer pensioners and bigger pension pension contributions or more people working more and longer. One of the biggest achievements of the European social model is to ensure that third age is not a synonym to poverty. This is a commitment that we should continue to fulfill and the dialogue opening today aims to assist EU member states to reach the right decisions to ensure that their pension systems can meet this target" said Hungarian Commissioner for Employment and Social Affairs Laszo Andor.

The "green bible" covers several issues among them:

Ensuring sufficient revenues and long term viability of pension schemes

Achievement of the proper time balance between work and pension and facilitation of extension of work life

Lifting obstacles concerning people working in different EU states and obstacles in the internal market regarding pension products.

Safer pensions in the aftermath of the recent financial crisis, for the present and the long term

Ensuring more transparency on pensions so people can take grounded decisions on their income after retirement

Deliberations will last four months till November, 15, during which period all interested can post their proposals in the website:

http://ec.europa.eu/yourvoice/ipm/forms/dispatch?form=pensions.

Sources: ÍÅÔ-ÍÅÔ 105.8-ÁNA/ÌPA News item: 38273

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