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Pension system reform in Central and Eastern Europe

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  • Marek Louzek

Abstract

At present, the debate about pension reform in Central Europe is dominated by approaches which may be politically in conflict but have one thing in common: they address the pension system by means of indebtedness. The Czech Republic is too lax concerning modifications to the parameters of the PAYG system, consequently plunging the system into deep deficit. Poland, Hungary and Slovakia put forward a radical reform, which, however, would also be financed by increasing state debt. This article shows that both solutions hide serious pitfalls. Real reform should be budget-neutral, i.e. it should not generate any new budget deficits - whether explicit or implicit. Privatisation of the pension system is a reasonable aim but it should not take place at the cost of indebting future or current generations.

Suggested Citation

  • Marek Louzek, 2008. "Pension system reform in Central and Eastern Europe," Post-Communist Economies, Taylor & Francis Journals, vol. 20(1), pages 119-131.
    • Handle: RePEc:taf:pocoec:v:20:y:2008:i:1:p:119-131
    DOI: 10.1080/14631370701865789
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    References listed on IDEAS

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    1. Holzmann, Robert, 1997. "Pension reform in Central and Eastern Europe: necessity, approaches and open questions," Financiamiento para el Desarrollo 5245, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
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    Cited by:

    1. JIMON Stefania Amalia & BALTES Nicolae & MUNTEAN Neli, 2019. "Social Protection Of Older People And The Structure Of Consumption Expenditure In Countries Of Central And Eastern Europe," Revista Economica, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 71(2), pages 103-117, September.
    2. Ludmila Siarda Trochtová & Jiří Pospíšil & Helena Pospíšilová, 2021. "Social Risks as the Source of Threats and Concerns: The Survey in the Czech Republic," Societies, MDPI, vol. 11(4), pages 1-17, November.
    3. Balteș Nicolae & Jimon Ștefania Amalia, 2018. "Considerations Regarding the Pension Systems in Countries of Central and Eastern Europe," Ovidius University Annals, Economic Sciences Series, Ovidius University of Constantza, Faculty of Economic Sciences, vol. 0(2), pages 94-99, December.

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