Minister attempts to assuage fears over pensions

Date: 14/11/02

By Martin Banks

EUROPE'S pensions and social security systems urgently need reforming but are not 'sick', says a former German minister.

Horst Günther, Germany's ex-labour and social affairs minister, told a conference in Brussels that widespread uncertainty about retirement prospects highlighted the need for a radical reform and modernisation of pensions systems. But this did not mean the system was 'sick', he added.

The one-day conference, The Future of Social Security Systems in Europe, was organised by two German foundations, Hanns Seidel Foundation and Konrad-Adenauer-Stiftung, the SME Union and the European Union of Christian Democratic Workers.

Delegates heard that many people are finding the amount they are currently putting aside for retirement is well short of what is needed to secure a comfortable income.

A recent survey in the UK, for instance, showed that nine million people are less confident about their pension now than a year ago.

Speaking at the European Parliament last Thursday (7 November), Günther said: 'If we could, we would start again from scratch but that is not possible. Nor is it realistically possible to say one system is necessarily better than another one. Our goal, indeed our task, is to find a solution to the current problems facing the pensions and social security system.'

Franz-Josef Reuter, director of the Konrad Adenauer Foundation (Brussels), said that the whole sector was facing the most 'devastating crisis' in its history.

'Labour costs are too high and health systems are in a very precarious state. We have to face up to the fact that the traditional welfare system as we know it has come to an end.'

Europe's pensions and social security systems urgently need reforming but are not 'sick', says Horst Günther, Germany's ex-labour and social affairs minister.