Euro-zone 'needs comprehensive pension reform'
The Euro-zone needs comprehensive pension reform or the fiscal position will become unsustainable, says the International Monetary Fund.
“Without comprehensive pension reforms, fiscal positions in most of the euro area will become unsustainable—in some countries quite soon,” said Eduardo Aninat, deputy managing director of the IMF.
Speaking at the annual meeting of the Ifo Institute for Economic Research in Munich, Aninat said: “Reforms of entitlement systems in the euro area would also help to achieve the important goal of medium-term fiscal consolidation.
“This goal – enshrined in the Stability and Growth Pact – is essential to address Europe’s severely adverse demographics.”