Italy Increase Age Of Retirement

By Stewart Douglas

The Italian government have announced their latest measure in reversing the pension controversy, and attempting to overturn the national debt crisis.

Italy’s budget deficit has attracted attention from EU authorities, falling way short of Europe-wide targets. And with Europe’s oldest population, the welfare burden looks set to plunge their dire finances further into the red in the coming years.

An announcement today suggested that Italian Prime Minister Romano Prodi, in conjunction with Italy’s leading Unions, has agreed to raise the national level of retirement to 58, one year later than the present cut-off.

The news comes after months of the Italian pensions scandal, which has been a hot political issue in attempting to slim down the Italian budget deficit. 

With mounting national debts, the Italian government welfare system has been earmarked for savings, with initial plans looking to raise the age of retirement to 60 next year, before increasing to 62 in several years time.

However after much negotiation with labour Unions and the Italian executive, the age was reduced to 58, a rise from the current level of 57.

The deal looks set to save the Italian government significantly over the coming years, helping them to resolve their discrepancy with European Union budget requirements.

However critics see the measure as a more populist policy, and Prodi has been accused of succumbing to external pressures from Italy’s most influential Unions.

Italy’s aging population is set to increase the pension burden over the coming decades, and many see this latest development falling far short of what is required to rectify the situation. In spite of this, the deal leaves a margin for a further increase in retirement age by 2013.

The measures will be presented to parliament over the coming weeks, with experts predicting Prodi’s narrow majority will see it through to law.