WASHINGTON, Jan 31 (Hina) - Croatia is on a good even though demanding path towards a pension scheme reform, according to the World Bank experts preparing the first congress on European pensions to be held in Munich from February 11
to 13. The project leader, Robert Holtzman, told reporters at the Banks's headquarters in Washington some countries of Central and Eastern Europe, including Croatia, had done more and better than most countries of the European Union in the pension scheme reform. The number of pensioners, in relation to working citizens, is growing continuously which is understandable as over 20 percent of Europeans are over 60 years old. Holtzman warned the situation in many countries in 20 years would become unsustainable with the current level of around 10 percent of Gross Domestic Product allocated for pensions. The way out of crisis, according to Holtzman, is, on one hand, in increasing the mobi
WASHINGTON, Jan 31 (Hina) - Croatia is on a good even though
demanding path towards a pension scheme reform, according to the
World Bank experts preparing the first congress on European
pensions to be held in Munich from February 11 to 13.
The project leader, Robert Holtzman, told reporters at the Banks's
headquarters in Washington some countries of Central and Eastern
Europe, including Croatia, had done more and better than most
countries of the European Union in the pension scheme reform.
The number of pensioners, in relation to working citizens, is
growing continuously which is understandable as over 20 percent of
Europeans are over 60 years old.
Holtzman warned the situation in many countries in 20 years would
become unsustainable with the current level of around 10 percent of
Gross Domestic Product allocated for pensions.
The way out of crisis, according to Holtzman, is, on one hand, in
increasing the mobility of labour across state borders and among
the private, public and state sector. On the other hand, it is
necessary to change the pension scheme by establishing several
pension insurance pillars, decreasing some benefits and extending
the working life.
He accentuates the importance of a parallel development of fund and
non-fund pension insurance.
The World Bank experts assess the Swedish model of the re-
organisation of the pension scheme, which has been partially
applied in Lithuania and Poland, is the most successful so far.
As regards objections that the extension of the working life would
jam the labour market and cause undesirable economic consequences,
Holtzman answered that not one economic indicator pointed to that.
He added that countries whose legislation stipulated a shorter
working life had a higher unemployment rate.
The chairman of the board of Croatia's Privredna Banka, Bozo Prka,
has been announced as an introductory speaker at the Munich
Conference.
(hina) np sb