ECONOMY

Greek democracy seen at risk without a welfare state

Greek democracy seen at risk without a welfare state

More than a quarter of young people in Greece (26%) are neither working nor in training, when the equivalent rate in Europe stands at just 16.5%, according to a survey presented at an event in Athens held by DIKTIO – Network for Reform in Greece and Europe, the Delphi Economic Forum, Metarrythmisi, and Friends of Europe.

DIKTIO founder Anna Diamantopoulou presented the four major trends affecting the welfare state: demographics, the climate crisis, new forms of work and the digital transformation.

She pointed out that the current welfare state is oriented toward the elderly, to whom Europe gives on average 30% of GDP, while only 8% is provided for children and families.

She went on to note that in recent years there has been an increase in undeclared employment which violates labor rights as we know them and that the lack of digital skills is creating inequalities.

The event heard that democracy is at risk without the welfare state.

“Our insurance system is sustainable until 2070, but the aging of the population poses enormous challenges,” noted Labor and Social Security Minister Adonis Georgiadis, speaking of a large demographic decline that cannot be cured by the entry of immigrants into the country. At the same time, he pointed out that the government encourages retirees who want to continue working, as this way they will contribute to the sustainability of the insurance system.

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