Back
Register for SMS Alerts
or enter your details manually below...
First Name:
Last Name:
Email:
Password:
Hometown:
Birthday:
Sorry, we couldn't find that email.
Existing users
Email
Password
Sorry, we couldn't find those details.
Enter Email
Sorry, we couldn't find that email.

Raising retirement not necessary until 2029 – finance minister

‘Labour making dangerous statements over pensions and COLA’ – Tonio Fenech

12 July 2012, 12:00am
Finance minister Tonio Fenech
Finance minister Tonio Fenech
Finance Minister Tonio Fenech has hit out at criticism by Labour leader Joseph Muscat, accusing him of "delighting in partisan politics" after the government rebutted recommendations by the European Commission to raise retirement age and tag the COLA to productivity gains, rather than inflation increases.

Labour said the European Commission's calls to Malta to raise retirement age and tag the Cost Of Living Adjustment mechanism to productivity gains were down to the Prime Minister's incompetence.

"These are the same country specific recommendations the EC had already made in 2011, to which the government did not raise any objection. This has lost Lawrence Gonzi all credibility to fight his case in the face of the new recommendations for 2012," Labour said in a statement.

"The government's credibility is now undermined... Gonzi's position is a dubious one, and is based on convenience, not conviction. It means GonziPN will raise the retirement age after the elections."

In a rebuttal, Fenech defended the government's clear position against the EC recommendations. "The government has been clear in its position on the EC recommendations. We are reforming pensions in agreement with social stakeholders, and we don't think it makes sense to abandon this process. We are also in agreement that COLA is the result of agreement between all social partners and is one of the main pillars of industrial relations in this country," Fenech said.

Fenech accused the Opposition of making dangerous statements and alluding to change COLA twice a year - something the General Workers Union is proposing - or even reduce retirement age.

"The EC's country specific recommendations this year are not the same as 2011's, as Labour is saying, because the Commission wants us to remove the price impact on COLA from imported goods, which the government has not accepted," Fenech said of the cost of living adjustment.

"On pensions, the Commission demanded an acceleration in the increase of retirement age, when government studies based on the Commission's methodology of life expectancy shows this does not need to happen before 2029."

avatar
L-Imqareb .
Ghaliex il-Poplu Malti u Ghawdxi ghandu ibghati ghall izbalji, ic-cucati, korruzzjoni, sparparjar, deficit u dejn li ghamiltu inthom? Jien nissugerixxi li kull min ghamel zball ihallas ta ghemilu u min seraq irodd lura. Wara kollox liz-zghir hekk taghmlulu, sa titfawh il-habs, barra li toqtluh bil-guh.
Deals
Latest Business News
Business News 07:35
Europe has some “backyard cleaning up to do” as the second region with the highest number of intermediaries having assisted inte...
Business News 18:24
In a statement, the government said that debt has gone down to pre-2008 levels
Business Comment 10:45
As Donald Trump is sworn into office as the 45th President of the United States, both his toughest critics and strongest supporters need to ...
Technology 23-01
Samsung has blamed faulty batteries for the fires that hit its flagship Galaxy Note 7 device last year, forcing the company to rec...
Business News 23-01
The Central Bank warns that the beneficial economic impact of the pension reform will fizzle out in 10 years’ time, and that the gover...
follow us on facebook