“The debate on pension funds still arouses as many passions, because it is imbued with ideology” | EUROtoday

SRed to clear, ” anger ” As a strap, Edouard Philippe subsequently launched into the race on the Elysée. He castigates the immobility of Prime Minister François Bayrou and the shyness of his predecessors (besides one, we are going to guess which one). He swears that it’s attainable to reform the State, pensions and migration coverage. But the center of his challenge to avoid wasting France is to finish the distribution retirement (property pay the pensions of retirees) by a obligatory layer of capitalization (property save for his or her previous days), which it proposes to repair 15 %.

We do not know very nicely who will finance this new machine – the taxpayer? The deficit? Companies? Employees? – But let’s go. The debate on pension funds, which was all the fad within the Nineteen Nineties was relaunched. It at all times arouses as many passions, as a result of it’s imbued with ideology.

Supporters of pension funds are advancing beneath the masks of pragmatism: to hearken to them, it’s a query of going through two issues, the ageing of the inhabitants and the financing wants of corporations. But their arguments are struggling to persuade.

Demography, first. No one denies that it creates robust rigidity on the pensions system. But how will the pension funds remedy the issue? From an financial standpoint, regardless of the system (distribution or capitalization), it’s at all times the exercise of the current which permits to pay the pensions of the current. Only the piping that binds the primary to the seconds adjustments from one mannequin to a different. The concept that one can teleport sooner or later the fruit of the work of the current yr is a view of the thoughts.

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