Novel second-pillar proposal on pensions

A new proposal regarding the structure of the country's social security system emerged on Monday at an event organized by the Hellenic Association of Insurance Companies (EAEE). It concerns the transfer of a portion of social security contributions toward the creation of an investment pillar for the system.

Director General of the Foundation for Economic and Industrial Research (IOBE) Nikos Vettas presented a study titled "Pension Reform and Growth," which laid out the reform. He said that while the reform is less radical than others that have been presented, it also bears a lower fiscal cost and would be easier to implement. His main argument was that, despite recent interventions, the country's pension system remains exceptionally costly, encourages contribution evasion and requires very high state financing.

The proposed reform includes the maintenance of the...