However, in Western Europe it is customary to think about the "third age" in advance. And for European governments, reforming the seemingly quite effective pension system has become a constant headache over the past decade. After all, the problem of ensuring a decent life for elderly people has a pronounced not only social but also political subtext. It is no coincidence that it was over the pension problem that even outwardly quite stable governments stumbled and were forced to resign. For example, one of the Italian cabinets of ministers, also headed by Silvio Berlusconi, could not withstand the pressure of a one-and-a-half-million-strong demonstration in Rome under slogans that can be reduced to one phrase: "Give us fair pensions!"
But it is impossible to endlessly increase contributions to pension funds when taxes are already high. And it is dangerous for politicians to cut current substantial pensions! These circumstances, as well as depressing demographic indicators, forced the authorities of almost all European Union countries to seriously undertake a revision of their pension systems, since it became obvious that there are fewer and fewer workers per representative of the "third age", and, accordingly, a growing share of gross domestic product (GDP) must be spent on social needs. The situation where one works and seven eat makes it necessary to seek a way out of the impasse, to achieve consensus not only with trade union associations but also with opposition forces. The seriousness of the problem is indicated by the fact that even Sweden, whose pension model is considered exemplary, had to make significant adjustments in 1999. Now the Scandinavian country is preparing for a sharp increase in the number of pensioners, which will begin in 2005.
The European Commission sees a way out, in particular, in extending the working activity of citizens of the "fifteen", and in the future of the "twenty-five". This is provided for by the decisions of the European Union summit in Barcelona in December 2001. The summit set the goal of achieving a five-year increase in the average age at which EU residents can retire. Brussels considers this measure urgent, since already in 2004-2005 a mass retirement of the "baby boomer" generation will begin - people born in the first years after World War II. Moreover, in a number of countries, primarily France and the Netherlands, where one can become a full-fledged pensioner even at 57.5 years old, this process is already underway. However, within the framework of the common EU policy, each government uses its sovereign right to seek its own solutions to this complex issue.
Passions over pensions
Pension system reform has come to the fore primarily in Germany, Austria, France and Italy. Moreover, it is not without paradoxes.
In Germany, for example, there is increasing talk of raising the pension threshold by 2010 not to 65 but to 67 years, and this is being insisted upon not by right-wing oppositionists but by the Social Democratic government of Gerhard Schröder itself. At the same time, public opinion polls show that 86% of Germans do not want to work after reaching 65. Let us recall: this country has the oldest state pension system, founded almost 130 years ago by Bismarck.
In Austria, which stands out even among EU countries for the duration and strength of its "social partnership", as a result of which strikes have not occurred in this country for decades, the government's pension reform project has set the Austrian trade unions in motion. After all, the cabinet of Wolfgang Schüssel intends to increase the length of service required for a full pension from 40 to 45 years, and the age threshold for men from the current 59 to 65. The far right is trying to exploit the resulting discontent for their own political purposes.
In Italy, which has the "most expensive" pensions in Europe - 16% of GDP is spent on them - the current government of Silvio Berlusconi, under pressure from entrepreneurs, decided to modernize its own reform of 1995. The issue is not about age, but only about reducing the financial burden on employers by 5% when hiring new labor. However, Italian trade unions consider it necessary to review the current model as a whole. As for ordinary residents of the Apennines, according to a recent public opinion poll, 64% of them are convinced: one should retire no later than 60 years old, in order to "have the opportunity to enjoy a life that is not yet too decrepit".
Passions run high
The Spanish pension model is considered "too generous to last long": it does not take into account the rapid aging of the population. This is understood by the government of José María Aznar, which is trying to take the necessary measures. In modern Spain there are about 16.3 million workers who support almost 8 million people of the "third age". At the same time, the minimum pension is 232 euros, and the maximum is 2,130 euros. If a worker has contributed money to the pension fund for 15 years, he can count on a pension amounting to half of his gross salary, and on a full salary if he has transferred money for 35 years. Retirement in Spain is provided for at 65 years, but in reality it has settled at an average level of 62.8 years. In January 2002, the government began reforming the previous social pact, defining, in particular, 61 years of age as possible for retirement provided that contributions to the pension fund have been made for 30 years and the person has been unemployed for six months. Companies that keep workers until age 65 will be able to enjoy tax benefits of 8% with respect to these employees.
Against this background, the leader of Italy, which holds the EU presidency this half-year, spoke in favor of Brussels developing a unified pension reform for 14 countries (excluding Great Britain) - a kind of "Maastricht Treaty in the social sphere." In other words, Silvio Berlusconi believes that the future reform should play the role of the Maastricht Treaty, which provided for the transition of the EU to a common European currency.
The governments of "Euroland" and the President of the European Central Bank, Wim Duisenberg, are persistently calling for a serious change in labor and social security policy.
Seeking a way out together
The pension reform project was discussed at the EU spring summit. In many respects it resembles the Swedish model, which has the highest rate of labor activity among older people in the Union. The Swedish system is based on three pillars: a "basic" pension (old-age pension, at least 740 euros per month), ensuring a subsistence minimum for everyone over 65 who has lived in the country for at least 40 years; an "integrated" pension, depending on length of service and income; and voluntary personal insurance, on which tax must be paid.
Of course, the European Commission only encourages, but by no means forces, governments to take appropriate measures, including those of a market nature.
Important decisions aimed at creating a common pension market were taken by the EU economic and finance ministers in May of this year. After lengthy discussions, they approved a directive allowing social security services to provide their services in all EU countries as a single whole (Belgium's representatives abstained during the vote). The purpose of this directive is to ensure a high level of social protection, primarily for those elderly people covered by pension funds.
Currently, about 25% of the Union's working residents contribute to these organizations; the funds manage assets estimated at 2.5 trillion euros, which is approximately 30% of the GDP of the "fifteen."
According to Frits Bolkestein, a member of the European Commission responsible for internal market affairs, the new directive will allow residents of Union countries to make more effective use of pan-European pension funds. After this decision enters into force in two years, a private pension fund of any EU state will be able to provide its services in any country of the association directly, not through local intermediaries, he noted. Incidentally, to this end, Brussels has allowed the relevant supervisory bodies of the "fifteen" to recognize each other's functions.
Obviously, the existence of a common currency - the euro - among 12 countries greatly facilitates a joint solution to the common problem. Meanwhile, the discussion about social security for Europeans retiring has grown into a debate about what kind of future society is being created on the vast economic and political space of the EU. As we see, it is not only our country that faces the search for a development path in the new century and millennium.
Our domestic realities inevitably come to mind for another reason as well.
Children needed
By the abundance of people in white Arab robes, the arrivals hall of Brussels airport could be mistaken for the "air gates" of the capital of Morocco - Rabat. These are visible signs of how European identity is changing even in the "capital" of the EU, where, according to demographers, native Belgians may in the foreseeable future lose their titular status. The main reason for this is the low birth rate in the developed countries of Europe and the influx of immigrants.
In 2002, only 3.99 million babies were born in the EU states. This is the lowest figure for the entire period after World War II. Experts explain this "decline" primarily by the increase in the length of education of young women and their labor activity. In addition, the number of marriages is declining in almost all countries of the Union.
As a result, the average age of inhabitants of Western Europe was already 39 in 2000, and by 2030 it will reach 49. And in just 15 years, in Ireland, Luxembourg, the Netherlands and Finland, people aged 65 and over will make up more than a third of the population.
This process is accompanied by an increase in average life expectancy: over the past half century in Western Europe it has increased by 10 years! According to the report "Social Portrait of Europe" published annually by the European Commission, in 15 years the number of EU residents who have passed the 80-year mark will increase by 50% and reach 20 million people. The only means somewhat improving the demographic situation in Greater Europe is the influx of immigrants, although it also comes with additional social problems.
In 1999, there were 18 million foreigners in the Union countries, which already accounted for 4.9% of the total population of the "fifteen." Legal immigration alone increases the population by an average of 700,000 people each year. Economists consider the influx of foreign labor to be a necessary condition for the further development of the Old World. True, they admit that immigrants themselves inevitably age and join the ranks of local pensioners. With all the ensuing consequences.