Wednesday Jul 30, 2014 Search
Weather | Athens
32o C
25o 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 system’s 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 “The Consequences of the Aging Population for the Greek Social Security System in 2013-50,” are that due to the falling revenues from contributions and state funding, the system’s balance will only last for another couple of years, after which additional funding of 0.5 percent of the country’s 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 institute’s 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 workers’ 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)  
Six firms submit bids to lease Vouliagmeni beach
IMF´s Lagarde not sure yet about debt relief for Greece
Deals reached for twin plot on Afandou, for 42 million
More delays and red tape for companies’ tax rebates
EU Commissioner Damanaki unlikely to return to Greek politics
Greece’s current European Commissioner, Maria Damanaki, will not return to Greece or Greek politics when her tenure ends in October, Kathimerini understands. Damanaki holds the Maritime Affa...
Police arrest one, seek another three over counterfeit goods
One man has been arrested in the western Athens suburb of Aghia Varvara after police raided a store selling counterfeit goods. Officers are searching for three other suspects. Police found m...
Inside News
VOLLEYBALL
Volleyball national team second in European League
Much as the national volleyball team tried to repeat in the finals of the European League the feat it had achieved in the semifinals, it failed to overturn the advantage Montenegro had got f...
SOCCER
Ranieri says he has little to change in Greek national team
The Hellenic Football Federation (EPO) presented Claudio Ranieri as the new Greece coach for the next couple of years, after the Italian manager signed his contract in Athens on Friday. “I l...
Inside Sports
COMMENTARY
Through insecurity comes optimism
Prime Minister Antonis Samaras recently expressed his optimism regarding the quota of 180 Parliamentary deputies required for the election of Greece’s next president, in order for the countr...
EDITORIAL
Futile policy
The policy that Israel has been pursuing vis-a-vis the Palestinians is wrong and futile. Current tactics have failed to resolve the security issue and, at the same time, they are rapidly dra...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Six firms submit bids to lease Vouliagmeni beach
2. IMF´s Lagarde not sure yet about debt relief for Greece
3. EU Commissioner Damanaki unlikely to return to Greek politics
4. Police arrest one, seek another three over counterfeit goods
5. Coalition submits new proposals for Greek coastline
6. Deals reached for twin plot on Afandou, for 42 million
more news
Today
This Week
1. Coalition submits new proposals for Greek coastline
2. EU Commissioner Damanaki unlikely to return to Greek politics
3. Police arrest one, seek another three over counterfeit goods
4. IMF's Lagarde not sure yet about debt relief for Greece
5. Six firms submit bids to lease Vouliagmeni beach
6. Greece names fifth privatization agency chief in four years
Today
This Week
1. Unequal after death
2. Greek sovereign debt at 174.1 percent of GDP in first quarter
3. Hedge fund Dromeus turns Greek tragedy to triumph with 160 pct gain
4. Quadriplegic woman on life support 'dies due to unpaid power bills'
5. Front-line threats
6. Defense Minister Avramopoulos to represent Greece at European Commission
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2014, H KAΘHMEPINH All Rights Reserved.