Demographic Change (Communication)
The Commission expects a dramatic increase in public spending for pension, healthcare and the care of elderly people within Member States by 2060. Therefore, it is urging for necessary structural reforms of social insurance systems. Furthermore, it promotes higher education budgets and target-oriented measures to activate the job market.
Structural reforms of social insurance systems are long overdue. The Commission is absolutely right in urging their necessity. In the case of pay-as-you-go pension schemes it is correct to introduce a supplementary funded pension in view of the demographic trend. However, a complete switch to funded pension would lead to a double burden on the currently employed population. The Commission's call for a flexible handling of the retirement entry age deserves to be supported as long as the insurance community is not worse off by this decision.