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An OECD proposal has been presented, suggesting measures such as raising the retirement age, tightening the Women40 (Nők40) program, restricting the 13th month pension, and reintroducing early payments of reduced pensions. The document also says the government should limit the number of people receiving a 13-month pension. The expert report, claiming to be independent, would also reintroduce the early retirement pension. It also includes an increase in the retirement age to 67 in 2045.
However, the government has expressed its opposition to the report and its contents, writes Magyar Nemzet. The finance ministry emphasized in a statement that despite pressure from Brussels, the government is not planning any changes to the pension system, adding that it was committed to preserving the value of pensions and paying the 13th month pension. They said that
the government does not agree with the recommendations of the OECD (Organization for Economic Co-operation and Development) expert, who was asked to come forward under pressure from the European Commission, and does not support them.
The Brussels assessment of the pension reform can only be put on the agenda if the government meets the 27 conditions set by the Commission earlier for access to the recovery fund. The Council of the European Union will then unblock the recovery fund. Hungary will only be able to submit its first payment request to Brussels after the freeze is lifted, where it will be checked whether the country has implemented the reforms set out in its recovery plan by the deadline.
In the event of non-compliance, the Council, acting on a proposal from the European Commission, may suspend all or part of the amount indicated in the payment request.
In other words, the European Union continues to blackmail the government, resisting pressure and is committed to maintaining the 13th month pensions, with the funds it owes to the Hungarians.
The government submitted a Recovery and Resilience Plan back in May 2022, accepted by the European Commission. In the section on the sustainability of the pension system, it committed, among other things, to a public consultation on the proposal, based on a report by an independent group of international experts, before the law is enacted.
Via Magyar Nemzet; Featured image via Pixabay