According to Maria Stella Gelmini, a government official, PM Berlusconi and Northern League leader Umberto Bossi have agreed on how to raise the retirement age for both men and women woman working in both the private and public sectors. IlSole24Ore reports this morning that the leaders of the PDL and NL – the most representative parties in the centre-right coalition – agreed on gradually raising the retirement age as it applies to the “pensioni di vecchiaia” pension system to 67 years from 60 for women and 65 for men. The adjustment is to start next year and be completed by 2025.
According to the newspaper, the Italian government will also commit to other structural reforms, such as liberalisation and privatisations and state asset sales.
We need more details before being able to draw final conclusions on whether the new system would represent a decisive improvement in the stability of public finances over the medium term. That said, we think the next step should be increasing the retirement age (or eventually the number of years of social contribution) of workers falling under the other main pension scheme – called “pensioni di anzianita'” – which is currently set at 65 years.
It is difficult to find clarity in Umberto Bossi’s declaration, as he was reported as saying: “we are close to an agreement but the government’s stability is still at risk”. After having opposed pension reform (and having threatened a government crisis in case of approval), it seems he has altered his positions.
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ECONOMICS RESEARCH | INSTANT INSIGHTS