Pension age ‘must be raised’

EU countries must raise retirement age to sustain growth in the labour market, the European Commissioner for Employment, Social Affairs and Inclusion, László Andor said yesterday.

Speaking at the general assembly of the European People’s Party’s Workers’ Group, being held in Malta, Dr Andor said the matter affected the entire EU. “Member states need to enhance labour market participation, raising the retirement age and decrease early retirement schemes,” the Hungarian commissioner said.

“Achieving a better balance between years spent in employment and in retirement would support greater sustainability of pension systems and the long-term ability to provide adequate pensions,” Dr Andor said.

He said a major effort was required to eliminate the possibility of a double-dip recession, noting that the European forecast for jobs and GDP growth was bleak.

The average unemployment rate in Europe was “high” at 9.45 per cent and he noted that Malta was well below the average at 6.3 per cent.

Malta ranks at the bottom of the EU list in terms of labour participation.

Dr Andor said employment expectations for the coming three months were “deteriorating” in the retail trade sector and the financial services sector.

Other areas which he said should be addressed were youth unemployment, labour contracts and accessibility to childcare.

Prime Minister Lawrence Gonzi said it was important to bear in mind the human aspect when speaking of budgets and financial matters.

“Market forces alone do not ensure a fairer and more just society. We want markets to work for people and not people to work for markets,” he said.

Dr Gonzi said he believed that economic governance and social inclusion were not and should never be mutually exclusive.

Faced as it was with ongoing debt sustainability challenges and demographic challenges, Europe had to enhance productivity growth, Dr Gonzi said.

He said it was possible for the EU to compete with China and the US, pointing out that a lot of manufacturing was done using robotics these days, meaning there was essentially no difference in the quality of work done in the middle of China or in Malta, only that European research could enhance the end product.