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Dijsselbloem: Turning back pension reforms would reset the problem

TAGS: Politics, Economy

The painful reforms Greece had to implement to make its pension system sustainable were necessary and any deviation from these policies would bring back the problem, former Eurogroup chief Jeroen Dijsselbloem said in an interview with state-run news agency ANA-MPA, published on Monday.

Dijsselbloem is scheduled to attend the presentation of the Greek edition of his book, titled “The Euro Crisis,” in Athens on Tuesday.

Asked about the discussions held among Greece's creditors during the eight-year bailout period about the country's pension system and whether all cuts were necessary, the Dutch politician said the real question was how the state would pay for them.

“The key question is whether the pension system is sustainable over the long run. In other words, are the contributions paid in, balanced with the benefits paid out? If not, how are you going pay for this gap? How much tax can you ask the current generation of working people to pay?” he was quoted as saying.

“In an ageing society, you need to face these issues. A combination of everybody paying their fair share in contributions and everybody working longer allows for benefits of a socially acceptable level. Turning back these measures would simply reset the problem,” he added. 

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