Thursday April 17, 2014 Search
Weather | Athens
15o C
11o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Social security system has to find new sources of revenue in 2016

By Christina Kopsini

A report by the Labor Institute of the General Confederation of Greek Labor (GSEE) due to be presented on Monday shows that the social security systemís balance between revenues and spending will be upset as of 2016, meaning additional funding will be needed to keep the system going, Kathimerini understands.

The main findings of the report, titled ďThe Consequences of the Aging Population for the Greek Social Security System in 2013-50,Ē are that due to the falling revenues from contributions and state funding, the systemís balance will only last for another couple of years, after which additional funding of 0.5 percent of the countryís gross domestic product, or about 950 million euros, will be required.

If one adds to that amount the estimated necessary offsetting for the expected loss of 3.9 percent of contributions, amounting to 1 billion euros, it becomes clear that 2015 will be a landmark year for the pension system as it will have to find new sources of revenues.

The precise amount of the additional resources required from 2016 to 2050 due to decreased state funding will be announced on Monday, along with the size of the savings from the reduction in pensions. The plan is for state spending on social security funds to go down from 24.1 percent of GDP in 2015 to 17.4 percent in 2060.

According to the instituteís forecasts, it will take two full decades for unemployment to revert to the level where it was in 2009, the year before Greece entered the bailout agreement, provided of course that the projected growth rate of 3.5 to 4 percent every year is attained. After all, the losses incurred over the last three years have been so extreme that their effects on the pension system could hardly be covered.

The institute has found that the most important losses in the period from 2010 to 2013 have been the 18.2 percent reduction in employment, the 37-billion-euro decline in salaried workersí revenues, the 16.3-billion-euro cut in average monthly salaries and the slashing of domestic demand by 31 percent, reverting to the level last seen as far back as in 1999, before Greece joined the Economic and Monetary Union.

ekathimerini.com , Tuesday December 3, 2013 (22:57)  
Greece startup leaders say they canít break jobless cycle alone
Euro award institutions choose Greece
Mission to woo Russian visitors
IOBE: Reforms are the only way for economy to return to growth
Homemade bomb targets car of deputy Parliament speakerīs wife
A homemade explosive device on Thursday destroyed the car of deputy Parliament Speaker Giorgos Kalantzis's [photo] wife. The vehicle was parked outside the couple's home in Kavala, northern ...
Wearing crowns of thorns, cleaning ladies hold protest at Finance Ministry
Laid off cleaning ladies wearing crowns of thorns on Thursday protested outside the Finance Ministry in Athens, local media said. Demonstrators reportedly waved banners against the job cuts ...
Inside News
SOCCER
Greek soccer turns fishier than ever
Soccer in Greece reached new lows in scenes unseen since the national teamís triumph in Euro 2004, as PAOK and Olympiakos served up a cup semifinal with PAOK emerging as the winner and the s...
BASKETBALL
Greens within a whisker of upsetting CSKA Moscow
Panathinaikos came mighty close to snatching home advantage from CSKA Moscow in Game 1 of the Euroleague play-offs on Wednesday, but eventually succumbed to its host in Russia in overtime, w...
Inside Sports
EDITORIAL
Transparency of political party funding
Ensuring transparency in the funding of political parties and the manner in which they choose to spend their funds are crucial to the smooth functioning of our democracy. After all, most of ...
COMMENTARY
Historical baggage
In Ukraine, which is on the brink of civil war, itís not just whether the former Soviet republic will join the Western camp or retain a neutral status reminiscent of Finland before the break...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
†RECENT NEWS
1. Homemade bomb targets car of deputy Parliament speakerīs wife
2. Wearing crowns of thorns, cleaning ladies hold protest at Finance Ministry
3. Greece startup leaders say they canít break jobless cycle alone
4. Mayoral candidates clash over Athens mosque plans
5. Seven arrested over Toumba violence
6. Ground-breaking Good Friday mass signals thaw in Cyprus
more news
Today
This Week
1. Ground-breaking Good Friday mass signals thaw in Cyprus
2. Seven arrested over Toumba violence
3. Mayoral candidates clash over Athens mosque plans
4. Greece startup leaders say they canít break jobless cycle alone
5. Wearing crowns of thorns, cleaning ladies hold protest at Finance Ministry
6. Homemade bomb targets car of deputy Parliament speaker's wife
Today
This Week
1. Bomb explodes outside Bank of Greece
2. Time to take a hard look at debt sustainability, says OECD chief
3. For faith and country
4. CCTV footage from Nigrita Prison shows signs of inmate torture [Video]
5. Car bomb explodes outside Greek Central Bank building, no one hurt [Update]
6. Samaras sees no need for third bailout
†††Find us ...
††... on
Twitter
†† ††... on Facebook ††
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2014, H KAΘHMEPINH All Rights Reserved.