Pension talks in 2005
After successive governments passed it on like a hot potato, the thorny issue of reforms to Greece’s lumbering pension system is to be broached later this year, the ruling conservatives pledged yesterday. «The dialogue about social insurance has to begin this year. We will ask our social partners to take the initiative and then we will progress consensually,» said Economy and Finance Minister Giorgos Alogoskoufis in a message aimed at leaders of workers’ unions and employer representatives. Greece’s cumbersome pension system consists of at least 150 obligatory pay-as-you-go schemes which are formed along occupational lines. It has been clear for many years that, especially with a substantially aging population, the state and the private sector are fast running out of funds to cover their extensive pension commitments. However, staunch opposition from workers and unionists to even the mere hint that contributions may have to increase or benefits be cut has meant that one government after another over the years has chosen to ignore the issue for too long – or to apply half-measures. Therefore, it is not surprising that the minister’s announcement was greeted with a fair deal of skepticism. «It is easy for the government to kick the ball into the stands, but it needs be clear about its aims and its direction,» said Spyros Papaspyrou, president of the main civil servants’ union (ADEDY). «The dialogue about social insurance is continuous but its aims and content are what is important,” said Christos Polyzogopoulos, president of General Confederation of Greek Labor (GSEE), Greece’s largest umbrella union. Both union chiefs rejected the suggestion that a panel of «wise men» should be set up to examine the pension system and come up with reforms. Alogoskoufis refrained from making any specific suggestions yesterday, apart from insisting that the retirement age (65 for men, 60 for women) would not be tampered with. The government has also been in talks recently with banks over combining separate pension schemes into a common system and the National Bank of Greece yesterday submitted a proposal to Alogoskoufis to incorporate its pension fund into IKA, the state-run scheme for employees in the private sector. A similar proposal by Emporiki Bank in December was opposed by banking union OTOE which feared a reduction in benefits for its 60,000 members.
