Rasmussen applauds Portuguese pension reform breakthrough

A revival of agreements between employers and trade unions - with the active support of Government - can achieve much-need reform in Europe said PES President Poul Nyrup Rasmussen, congratulating Portuguese Prime Minister for achieving a vital breakthrough yesterday in immediate and substantial reform of the pension system.

"The creation of financially sustainable pension systems is one of Europe's greatest and most pressing challenges" said Poul Nyrup Rasmussen, President of the Party of European Socialists. "I am immensely encouraged by the fact that the Government of José Sócrates has achieved a major reform with the agreement of employers and most trade unions. It shows that reform of pensions is possible, and that the way to achieve reform is by Government working with trade unions and employers. Social dialogue seems to have fallen out of fashion but it is the foundation for real progress in the reforms that everyone agrees are essential."
The Portuguese reforms are based on:
changes in the pension calculation so that payments are based on income throughout the working life rather than only on the last 10 years
greater equality in pension earnings with the introduction of maximum payments and new benefits for the poorest pensioners
a crackdown on avoidance of social security contributions by employers and employees
"The Portuguese reform agreement should inspire us all. Europe can only get back on track when people see that it is working to achieve a better future for everyone. It is the exact opposite of what is happening in some countries where neo-liberal excess has led to social divisions and a rise in extremist populism."

posted by Pedro Ribeiro @ 10:55 da manhã