Italy makes another attempt at pension reform as debt worries mount
Italy is working on a reform to make it easier for workers to retire early without bloating Europe’s second-highest pensions bill as rising borrowing costs fuel concern about the country’s huge public debt.
Officials said that Mario Draghi’s government wants to inject more flexibility into the system while avoiding the fate of the unpopular 2011 reform that raised the retirement age steeply but was suspended in 2018 after a backlash.
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A temporary replacement expires at the end of the year. Finding a permanent fix has been given added urgency as a period of low borrowing costs for Italy appears to be ending.
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Draghi aims to clinch a deal with unions on the reform by end-March. A key meeting between ministers and unions is due next week. He needs the backing of his multiparty coalition, meaning this former European Central Bank chief has tough negotiating ahead.
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Labour minister Andrea Orlando told Reuters the reform would not be one-size-fits-all. “It will take account of different life expectancies, of the situation of domestic workers and women, and the fact that working lives are often not continuous,” he said.
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