Editorial: No more improvisation with the pensions
There is no doubt that even with the dramatic cuts, the pension system today continues to remain unsustainable. First off due to…
There is no doubt that even with the dramatic cuts, the pension system today continues to remain unsustainable. First off due to the large number of pensioners (2.6 million), the huge rate of unemployment and the aging population. About 3 million employees, with slashed wages, are unable to maintain the current benefit system. If one were take into account the mistakes, delays and mismanagement of previous year, the situation becomes a nightmare.
Of course measures and corrections are needed immediately. The question is whether the findings presented by the Katrougalos committee can provide a solution or if it will carry on observing the tactics of regular cuts, which turn pensions into survival aids – essentially, the pensions over 1,000 euros are now considered a luxury.
It is self-evident that when the economy has shrunk by 25% in recent years, along with the state and fund revenue, then pensions cannot remain unscathed. Truly, the pensions over 1,500 euros were affected the most, having suffered 30% to 50% worth of cuts. These cuts dramatically affected the lives of thousands, who saw their life plans collapse.
The recipe of cuts therefore has a limit, which the plans of the Katrougalos committee are tending to overcome. How tight the time frame for the government to legislate may be, a broader discussion is needed to seek out all possible and realistic solutions. Because, as it has been noted, when the principle of reciprocity is overturned, then in essence tax evasion is rewarded. It is imperative that any cuts and adjustments must be carried out in a substantiated fashion and with a fair share of the cost, so that they may be accepted by society and to avoid any phenomena from the past.