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Italy To Raise Retirement Age Under Pension Reform
Xinhuanet
Rome, Italy
July 29, 2004
Prime Minister Silvio Berlusconi won a vote of confidence in parliament Wednesday evening over his plans to revamp Italy's groaning pensions system, local media reported Thursday.
The reforms, passed by 333 votes against 148 with one abstention, will gradually raise the retirement age for qualification for the full state pension.
Under the reform plan, from 2008 Italians must have paid contributions to the social security system for 40 years or be older than 60 with 35 years of contribution to get full pension after retirement.
At present, workers older than 57 can retire on full pensions if they have a record of 35 years of contributions.
With one of the oldest populations in Europe, pension expenditures consume 15.7 percent of GDP in Italy every year putting a heavy burden on the country's already tightened budget.
In order to achieve public spending cuts and meet EU Stability Pact rules, Prime Minister Berlusconi strove to have the reform plan adopted quickly.
The plan has provoked strong resistance from trade unions who, having already staged two general strikes in protest, threatened more street rallies in September.
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