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SIMEON DJANKOV: IF WE DO NOT CARRY OUT THE REFORM NOW, THE NEXT GOVERNMENT WILL SUFFER JUST AS 2/3 OF EU STATES

SIMEON DJANKOV: IF WE DO NOT CARRY OUT THE REFORM NOW, THE NEXT GOVERNMENT WILL SUFFER JUST AS 2/3 OF EU STATES
Снимка: SIMEON DJANKOV: IF WE DO NOT CARRY OUT THE REFORM NOW, THE NEXT GOVERNMENT WILL SUFFER JUST AS 2/3 OF EU STATES

01.12.2011

\"We will show determination. If we do not carry out the reform now, the next government will suffer just as 2/3 of EU states\", said the Deputy Prime Minister and Ministry of Finance Simeon Djankov in a statement for the media in parliament today.  

\"This has been the first real social reform in Bulgaria for 15 years. We will enable an active pension policy so as to ensure higher pensions for our parents\", said the Deputy Prime Minister. We fixed on the original option for gradual increase in the age by 4 months as from 2012 until it reaches 63 years for women and 65 for men, which is due to take place in 2019 and 2020, he further explained. The reform is thus accelerated 10 years earlier. This is our final decision and we are of the opinion that this is a useful reform both in terms of the situation in Europe and due to the demographic situation, added Djankov.

According to the Finance Minister, this is a good measure both for the miners and the other I and II category workers. As from 2014 they will be receiving their pensions from private pension funds. \"In order to have higher pensions, it would be very beneficial for them to enjoy some extra time for length of service and work. They will thus receive much higher pensions\", Minister Djankov backed himself with arguments.

Minister Djankvo assured that the lowest pensions would increase as from 1 June 2012, which would cost further BGN 30 million to the budget but would be supplied.

The Finance Minister also commented the topic of the social security contributions of civil servants saying that the effects of such a measure were still being discussed. We guarantee that we will compensate all civil servants and security system employees at 100% under the special acts and no one will lose on a net basis from the fact that they would pay contributions, said Simeon Djankov.

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