Wave of pension reforms coming to Europe by Zuzana Zelenakova

France as many other countries is struggling with growing debt and the solution introduced by the government of President Nicolas Sarkozy that involves extending time in the work force has provoked a lot of controversy so far. According to the government, its pension deficit for 2010 will be about 10.7 billion euros, by 2020 it is estimated to jump to 50 billion. Currently, the retirement age in France is 60 and French union leaders wish that it remains so. "If we want to save our pension system, we can no longer put off the decisions [on reform]," said President Sarkozy back in February. "These decisions will be taken in early autumn and contained in a bill that the gover! nment will present to the two assemblies." Truth is the retirement age in France is much lower than in other European countries. Mostly it is 65 and European countries are planning to raise it gradually. Originally, President Sarkozy has hoped to come up with the reform not earlier than 2012, however, the action must be taken earlier due to the global crisis. Also demographics play an important role as a large number of people is about to retire in the upcoming years. "Now, many people born between 1945 and 1952 are going to retire, so it's becoming urgent because how are we going to pay for these people in two to three years?" says Professor Laurent Marouani from HEC Business School. However, unions´ stance remains firm and the retirement age "is not negotiable" as head of the Workers Force union Jean-Claude Mailly said Monday. He continued to say that the union would not "accept in one way or another being required to work longer." His proposal how to cut spending i! s to raise the amount of money that people pay every month int! o the pe nsion system.

related story (sgx17006): http://www.france24.com/en/20100412-france-joins-european-pu...

by Zuzana Zelenakova for Cantell TV (http://cantell.tv)

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