EurActiv Logo
EU news & policy debates
- across languages -
Click here for EU news »
EurActiv.com Network

BROWSE ALL SECTIONS

Member states want pension reform to count in new budget rules

Printer-friendly version
Send by email
Published 18 August 2010, updated 19 August 2010

The European Commission said on Monday (16 August) that a call from nine EU countries to take into account pension reform in EU rules on budget accounting was relevant, and that it would prepare a position on it soon.

In a letter addressed to EU Economic Affairs Commissioner Olli Rehn and European Council President Herman Van Rompuy, who is currently chairing a high-level task force on reforming European economic governance, the finance ministers of Poland, Bulgaria, the Czech Republic, Hungary, Latvia, Lithuania, Romania, Slovakia and Sweden stressed that any decision on the coordination of national economic policies should take into account pension reforms.

"The Commission services and Commissioner Rehn are analysing the proposals put forward [...] and answers will be drafted over the next few days, before the next meeting of the task force on 6 September," Commission spokesman for economic and monetary affairs Amadeu Altafaj told EU journalists.

He said the Commission, which is the guardian of EU rules, had no clear position on the issue yet.

"All I can say is that it is a relevant topic: it needs to be addressed now because we are in the process of discussing various elements of economic governance," Altafaj said.

"Of course the Commission would like the criteria on public debt to be strengthened and to be taken more seriously, so it is highly relevant that this matter be raised now."

EU finance ministers are to meet on 6 September to continue their discussions on how to change EU budget rules to prevent future debt crises like the one triggered by Greece.

(EurActiv with Reuters.)

Next steps: 
  • 6 Sept. 2010: Meeting of EU finance ministers in Brussels.
  • 6 Sept. 2010: Meeting of task force on reform of EU economic governance.
Background: 

The question of how to reform Europe's generous pension systems is growing in importance as Europe's population continues to age.

As EurActiv reported (EurActiv 27/08/08), from 2015 onwards, deaths are projected to outnumber births in the EU so that, by 2060, one in three Europeans will be aged over 65, putting a huge burden on the economy and public finances.

As a result, the Commission has clearly underlined the need to raise the retirement age throughout Europe (EurActiv 09/06/10). Under the current scenario, Brussels stresses that people live longer and often access pensions earlier than when they turn 65.

The Commission in July 2010 launched its long-awaited 'Green Paper' on EU pension reform, but wary officials were at pains not to prescribe solutions to EU member states, where the issue is likely to spark controversies in coming years (EurActiv 08/07/10).

"A key to supporting adequacy and sustainability is ensuring that the time spent in retirement does not continue to increase compared to time spent working," the Green Paper argued.

More on this topic

More in this section

Advertising

Videos

Social Europe News videos

Euractiv Sidebar Video Player for use in section aware blocks.

Social Europe Promoted videos

Euractiv Sidebar Video Player for use in section aware blocks.

Advertising

Advertising