S&P: Romania public pension system least sustainable among emerging EU states.

By bne IntelliNews November 2, 2010
Romania's public pension system is the most unreformed and the least sustainable among the emerging EU countries, according to a ranking in rating agency S&P's report Global Aging 2010: An Irreversible Truth, quoted by Bursa daily. The country's public pension spending system will account for 14.8% of GDP in 2050 against 8.4% of GDP in 2010, according to the projections of the rating agency. The calculations include only the core pay-as-you-go system, but not the parallel systems, which are not based on past contributions and whose beneficiaries are farmers and special budgetary employees, and which also includes the minimum allowance for retired persons. The steep rise in the governments' public debt after the recent financial crisis enhanced the need for reforms, aimed at curbing the budgetary risks particularly in the countries, in which the study identifies huge increase of spending for the aging population.

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