Italy and Unions Reach Accord on Pension Reform
Prime Minister Romano Prodi sealed an accord with union leaders on pension reform Saturday, hailing it as a “historic” deal that will clinch Italy’s membership in Europe’s single currency.
The accord, which Prodi confirmed will trim about $2.4 billion from the state pensions bill next year, is part of overall welfare reforms that economists consider vital to Italy’s hopes of joining European monetary union.
The reforms “certainly will be sufficient for our European partners. The financial amounts are, in fact, those we had announced and that we had considered sufficient to join monetary union,” Prodi said.
Under the deal, the minimum retirement age for private-sector workers will be raised to 54 from 53 for those who retire in 1998, provided the worker has 35 years of service.
It will gradually be raised after 1998 to 57.
The deal also will equalize retirement criteria for private- and public-sector workers by 2004.
More to Read
Start your day right
Sign up for Essential California for news, features and recommendations from the L.A. Times and beyond in your inbox six days a week.
You may occasionally receive promotional content from the Los Angeles Times.
