Italy's Cabinet Meeting On Budget Put Off Amid Pension Woes - Reports

Italy's Cabinet Meeting on Budget Put Off Amid Pension Woes - Reports

MOSCOW (UrduPoint News / Sputnik - 25th October, 2021) Italy's cabinet meeting to consider the 2022 budget bill has been rescheduled from October 26 to October 28, to allow more time to reach an agreement within the government and with unions on pension reform, local media reported on Monday.

Italian Prime Minister Mario Draghi said that after three years, the "quota 100" pension system, which allows early retirement, would be canceled on the grounds that it is too expensive for the state, as reported by the ANSA media outlet.

High pension costs are making it hard for Italy to finance investments in other areas or cut its public debt, which is the second highest in the European Union.

With one of the world's oldest populations, Italy spends on pensions more than any other EU country except Greece, data from Eurostat shows. On the other hand, Italy is near the bottom for spending on education.

Championed in 2018 by the rightist League party, a member of Prime Minister Mario Draghi's national unity administration, the current "quota 100" plan allows people to retire if they have made 38 years of contributions and are at least 62 years old.