European countries are unable to pay promised pensions. A new crises is looming.
According to Wall Street Journal most European Union countries owe more than twice their annual gross domestic
product in pensions promised to current workers and retirees. As governments
scale back benefits, companies and individuals face a rising burden. But saving
for old age could prove a crushing blow to growth.
There are three types of European pension shortfalls. First, from
governments, the EU's main pension providers: Sweden, Denmark and Poland set
aside money to part-fund state pension liabilities, but in most countries they
are financed by tax contributions.
Geir Solem
http://www.elliottwavetechnician.blogspot.com/
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