Feb 20 • 04:30 UTC 🇨🇿 Czechia Aktuálně.cz

Higher pensions next year. Juchelka denies that the reform would be postponed or changed

Czech Minister of Labor Aleš Juchelka affirmed that promised pension reforms will proceed quickly, despite warnings about their potential negative impact on the state budget.

Czechia's Minister of Labor, Aleš Juchelka, has made a strong statement affirming that the government will implement planned pension reforms swiftly, countering criticism and concerns about the associated high costs. The reforms, initially promised by former Prime Minister Andrej Babiš, aim to secure the support of pensioners and include significant measures such as lowering the retirement age and accelerating pension adjustments. Juchelka emphasized that these changes are fundamental to the government's agenda, indicating a firm commitment to fulfil them.

The proposed reform is based on four pillars, with the first two being the reduction of the retirement age and faster pension valuation, which Juchelka asserts will not impact the state budget before 2030. The other two pillars focus on age-based pension increases for the oldest pensioners and support for working pensioners, which Juchelka warns will have immediate effects on the budget as soon as they are enacted. This ongoing effort to maintain voter support among senior citizens reflects the government’s strategic interests in a politically sensitive demographic.

While Juchelka has stated that impact studies will be conducted, he has dismissed any notion that the reforms could be delayed or altered. This firm stance raises questions about the sustainability and implications of these reforms in light of potential economic challenges, as experts have expressed concerns over their adverse effects on public finances. The approach taken by the Czech government highlights the balance between political promises and financial realities, showcasing the complexities involved in pension reform in the context of an aging population.

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