EU’s Dombrovskis: Greece needs a viable and more just pension system

Greece needs to build a long-term, sustainable, less fragmented and more just pension system, European Commission Vice-President Valdis Dombrovskis told journalists as he arrived at the Eurogroup meeting in Brussels on Monday.

He noted, however, that the pension system reforms are linked to the targets set in the country’s 2016 budget which was ratified last week and the first program review expected in early 2016. “The important issue is going to be the first program review which we expect early next year and recent Greek parliament vote on 2016 budget aiming to reach a primary surplus target set in this program is an important step in this direction,” he said.

“However, now we need to continue discussions with Greek authorities on how exactly those targets are going to be reached and probably important element there is the situation regarding the pension reform because it is first needed to ensure long-term, sustainable, less fragmented and more just pension system in Greece, but also has substantial tax implications,” he added.

He also said Greek authorities and the institutions now need to finalize a second set of milestones to disburse the remaining one billion from the first tranche by mid-December.

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