PM on Social security reforms

[Ellinas]

Prime Minister Costas Karamanlis said on Wednesday night, following an Inner Cabinet meeting, that changes which the government is promoting to reform the social security system "are positive and imperative".

Karamanlis said that the changes aimed at the salvation of a system which has been led to a deadlock because, as he said, the more reforms are delayed the bigger the deadlock gets and the solutions imposed by tough reality will become more painful for all of society and mainly for the younger generations.

The prime minister went on to say that if one did not wish to assume the political cost he could leave things as they are or make superficial changes, in other words transferring the problem and its deadlock to a future government, being aware that things will worsen in this way so that it will be that one that will shoulder the political cost.

"Such an option would constitute extreme irresponsibility. Such an option is inconceivable for me. It is completely alien to my political philosophy, my course and my decision to be useful for the country, even if I am not likable temporarily. For this reason we took a responsible decision for the substantive reforming of the social security system," the prime minister said.

Karamanlis noted that the reforms restructure the social security system, safeguard its longterm viability, they are mild and moderate, socially fair and serve the interests of society in its entirety even if they harm specific interests and specific privileges of the few.

The prime minister said that due to the chaotic reality existing, great inequalities have been created with pensions, great irregularities in pensioning time and great differences in medical and pharmaceutical care.

He further said that there are pensioners who receive a higher pension than the salary they had when they were working and others who are being pensioned for more years than they had worked.

Focusing in particular on the main reforms, Karamanlis stressed the following:

-Firstly, a bold and effective administrative reform since the 133 agencies and branches falling under the jurisdiction of the employment ministry will be reduced to 13. No fund whatsever will be excluded from the unifications. The main criteria for unifications are the similarity of those joining.

Secondly, corrective moves will be brought about in extreme and socially unfair cases, without general time limits being harmed and, at the same time, incentives will be provided for staying at work for those desiring this. Corrective moves concerning special age limits and special pensioning preconditions will be implemented gradually and most will begin as of 2013. General age limits will not change, pensions will not be reduced and contributions will not be increased.

Thirdly, institutional innovations will be promoted with the creation of the solidarity capital for generations where every year 10 percent from privatisations, 4 percent from VAT and 10 percent of social resources will be accumulated in this capital, which will remain intact until 2019. Central control will be enacted for the system of employment, pensioning, and treatment and every citizen will have a card with one number alone that will be essential for him to work, be pensioned or to receive treatment. The citizen will be served in a better manner in this way, contribution evasion will be tackled and extravagance will be curbed drastically.

Karamanlis concluded his statement by saying that the reforming of the social security system will not stop "because few and privileged people are functioning as an establishment. Because we shall not sacrifice the future and the progress of our country."

ANA