Rome

Italian pension reform to save 80 bn euros over 10 years

Social-security agency cites 'notable spending contraction'

Italian pension reform to save 80 bn euros over 10 years

Rome, June 6 - The previous government's controversial pension reform will generate projected savings of 80 billion euros over a 10-year period, Italy's social-security agency reported Thursday. According to an INPS study looking at the government's coffers from 2012-2021, "spending is undergoing a notable contraction that in 2019 will be worth 1% of gross domestic product (GDP)". Pension and labor reforms introduced during the technocratic government of ex-premier Mario Monti, a respected economist and former European commissioner appointed to prevent a Greece-like collapse of the country's finances, raised the age required to receive a state pension from 60 to 62 for women and from 65 to 66 for men, with further age increases over the years. In addition the reform increased the amount of years a worker must contribute. The change in law, which also contained measures that led to considerable downsizing at Italian companies, had the consequence of putting many people out of work who were too young to collect retirement benefits. Those so-called "exiles" number 390,000, according to an INPS report last year. The current left-right administration of Premier Enrico Letta has vowed to aid those workers in limbo, but has also pledged to follow through on the labor and pension reforms of the previous government.

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