Pensions, alert Ue: Fornero reform should not be touched
Reporting of Wall Street Italia
Of Alessandra Caparello
ROMA (WSI) – The European Union launches a new warning on the Italian social security system. In the report adopted on our country as part of the winter package of the European semester, the European Commission is betting the fates on Italy and the Fornero reform in particular indicated as untouchable.
The albeit partial changes made by Renzi governments and Gentiloni on the social security reform adopted by Italy in 2011, under the technical government led by Mario Monti, they would have in fact partially canceled the pension reforms that were made in the past with the consequence of increasing spending for the average period.
“The long-term sustainability of public debt Italian, ensured by pension reforms done in the past, It is slowly deteriorating, so much so that the European Commission's risk indicator went from low to medium (S2). Spending on pensions in relation to GDP increased by around two percentage points, as a result of the crisis and the consequent fall in nominal GDP. Italian pension spending is now the second highest in the EU and in theOECD, after the Greek one (…) The increase in implicit liabilities resulting from the aging of the population had been limited by past reforms of the pension and healthcare systems, which had improved Italy's long-term sustainability.