EUROPE - The World Bank has called for more public-private co-operation if Europe is to combat the problem of an ageing population.
As part of an initial address to a European pensions congress, the World Bank’s Robert Holzmann, head of social protection, and Michal Rutkowski, sector manager for social protection for Europe and Central Asia, stressed how the future state of benefits now depended on a productive public-private partnership:
“There is now broad acceptance of the need to complement reformed public and unfunded schemes with private and funded retirement income,” said Holzmann and Rutkowski in a joint statement.
“But there are also reservations by policy makers, politicians, and economists about the capacity of the private sector to deliver, and by the private sector itself, about the public sector’s ability to regulate and supervise in an appropriate manner.”
Faced with an ageing populous, the search for sustainable pension systems is topping the European agenda. Recently, Portugal and Spain were both reprimanded by the European Commission over failing to meet budgetary targets according to their respective Stability and Growth Pacts. Attention was drawn in both cases for the need to accelerate pension reform if economic stability, as well as the future credibility of the euro, was to be sustained.
The ‘European Pensions: A Public-Private Partnership’ conference will take place in Munich until February 13.
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