ITALY - The ‘95 pensions reform that would level wages for a saving of e100bn in five years should be our "compass" for the way forward, said employment minister Cesare Damiano.
He said it was possible to reduce the fiscal support given to the pensions system without making any changes to the contributions made.
Damiano said there is a need for the system to be stablised and claimed the reform proposed by minister Lamberto Dini in 1995 was the eay to go.
This reform allowed a system based on contributions and proposed the levelling of private and public salaries which would result in savings of e100bn in five years.
The minister also said the government must intervene regarding certain distortions of the pension reform coming into effect in 2008.
The main gripe with the reform is a three-year hike in the retirement age, from 57 to 60. Dubbed the “scalone” this suggestion has been met with controversy and objection from all sides.
Damiano explained that the “scalone” problem can only be faced following discussions with the social partners. He added that such debate will also be needed for the launch of an integrated pension system.
The removal of the “scalone” was a need also called for by the Italian Work Union (Unione Italiana del Lavoro - UIL). Secretary general Luigi Angeletti concluded, “this is the onyl thing that has to be done. There is no need for another reform.”
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