May 18, 2011

WHO PAYS THE PIPER...:

German Chancellor on the Offensive: Merkel Blasts Greece over Retirement Age, Vacation (Der Spiegel, 05/18/2011)

It was the kind of criticism that one isn't used to hearing from Angela Merkel. Normally sober and analytical to a fault, the German chancellor on Tuesday evening blasted a handful of heavily indebted southern European countries, saying they needed to raise retirement ages and reduce vacation days.

Keeping debt under control, Merkel said in a speech at an event held by her party, the conservative Christian Democratic Union, in the western German town of Meschede, isn't the only priority. "It is also important that people in countries like Greece, Spain and Portugal are not able to retire earlier than in Germany -- that everyone exerts themselves more or less equally. That is important."

She added: "We can't have a common currency where some get lots of vacation time and others very little. That won't work in the long term."

There are indeed significant differences between retirement ages in the two countries. Greece announced reforms to its pension system in early 2010 aimed at reducing early retirement and raising the average age of retirement to 63. Incentives to keep workers in the labor market beyond 65 have likewise been adopted. Germany voted in 2007 to raise the retirement age from 65 to 67 over the next several years.

Enhanced by Zemanta

Posted by at May 18, 2011 6:13 AM
  

blog comments powered by Disqus
« THERE IS NO IRAN: | Main | IN THE WAR ON LABOR, THEY'RE FRANCE: »