Brussels, 12/10/2000 (Agence Europe) - On Wednesday, the European Commission adopted a cooperation framework for ensuring the viability of pensions in Europe in the face of the common challenge of an ageing population. In presenting to the press this communication entitled "The Future Evolution of Social Protection from a Long-Term Point of View: Safe and Sustainable Pensions" (see EUROPE of 15 October, p.15), the Social Affairs Commissioner Anna Diamantopoulou pointed out that it did not contain any specific proposal or projects for a change in national policies, but a procedure, in that it is the first time, she says, that the Fifteen Member States have demonstrated a common political will and expressed the hope of exchanging experiences and good practices on this problem of reform in the pension systems. The Commissioner insisted on the fact that "pension systems are the competence of member states". It is the Member States, she says, that have the responsibility of implementing their social policies and hence their pension policies. In answer to questions on the Danish referendum on single currency, when one frequent question by voters was "will single currency force Denmark to change its social protection and retirement systems which are the very best in Europe?", Anna Diamantopoulou replied: "the Danish pension system will not be influenced by the EU. On the contrary, it should be emulated by the other Member States".
In conformity with the mandate of the Lisbon Summit, Anna Diamantopoulou stressed that this communication was the point of departure, the base for the study to be carried out by the High Level Group on Social Protection, which should make an analysis and a study on the future regime for pension systems at European level. The reform will be according to a framework set out in the communication. All the dimensions of this reform have been taken into account, namely: the independence and the prosperity of older people, population ageing and demographic problems, the aim of full employment in the year 2010. The Commissioner insisted on the importance of having sound public finances, linked to the aim of solidarity between generations and the need for participation by social partners concerned. She went on to quote a figure revealing the urgent need for reform: over the next 30 years, the number of persons reaching retirement age (65) will increase by 33 million, which means, explained the Commissioner, that, unless there are reforms, it will be necessary to create 90 million new workers, and therefore new jobs and new tasks. By way of conclusion, Ms Diamantopoulou pointed out that full employment in 2010 was an essential condition for modernising the European social model and for reform of our pension systems. Such reforms must be able to benefit from the advantages of the Single Market and of EMU.
In answer to a question on early retirement, the Commissioner pointed out that the communication was only on retirement. As far as early retirement strictly speaking is concerned, there are, she said, common practices which mean that this system is very widely spread - and "we do not want this". Also, she continued, in some Member States, there are more advantages for a worker during retirement than during active employment. One should therefore examine the question of early retirement and then use the pillar "employability" in European strategy for employment in order to remedy the situation, Ms Diamantopoulou concluded.
In a written statement released by the spokesman's service, Ms Diamantopoulou explained:
"The ratio of pensioners to people of working age will double between 2000 and 2040. The additional pressure on public finance is clear. The challenge of policymakers is to ensure that future pension financing does not destabilise budgets but, at the same time, that pensioners remain adequately protected.
As for labour market reform, there is no room for complacency. Removing barriers preventing older people and women from participating in the labour market will be vital to unlock society's full human and economic potential. Better mobility of labour within the EU is also critical in order to make sure that skills are located where they are needed. An agreed immigration policy will play its part in due course.
Reforms cannot happen overnight. Pensions must be not only economically sustainable but also socially sustainable. We must consult widely on these questions. Social dialogue will have a defining role to play in the political discussion on these reforms. The problems are serious enough to concern all fifteen member states and important enough for all EU citizens to be heard".
The problem of this communication must of course be seen in relation to the proposal of directive on the management of pension funds, presented at the same time by the Commission (see yesterday's EUROPE, p.9).