Pact with Italy for pensions, Tabaku collides with Gonxhe: the SP agreement with pensioners is tragic!

Pact with Italy for pensions, Tabaku collides with Gonxhe: The SP agreement with

The discussion about the pension agreement between Albania and Italy has brought the Minister Blendi Gonxhe into conflict with the democratic MP Jorida Tabaku this Thursday in Parliament.

DP MP Jorida Tabaku said in her speech that this agreement was the result of a long discussion between several Albanian governments, which is now reaching its climax. In her opinion, this agreement should and will receive the approval of all MPs, but she asked for information about which other countries the Albanian government is negotiating such agreements with, recalling an agreement with Greece that is still pending.

“I think the first question that naturally arises for everyone is: Which countries will the Albanian government continue to negotiate pensions with next and where are we in terms of talks with Greece, the country with the highest pensions? Have the technical discussions progressed with political commitment? Do we have any information today about where we stand in relation to the pension negotiations and over 700,000 Albanians who unfortunately left for Greece today? said Tabaku.

She said that pensioners were in poverty, while the pension reform had really failed, thereby destroying once and for all the propaganda that this reform was successful.

“The data is stubborn and we have not had the opportunity to discuss it fully in the economic committee. It’s bad because of the constant noise and the fact that you’re interested in information. But INSTAT says there is a risk of being bad.” In Albania, the proportion of people over 65 has increased by 2%, while in 2022 48% of all pensioners will receive a partial pension. This means that today every second pensioner has a partial pension. 85% of pensioners, especially in rural areas, have a pension income that is below the vital minimum, and this is the level set and calculated by EUROSTAT, because we, like all of us know, do not have an official level defined in terms of the vital minimum.

The sector’s expenditure related to direct payments in the pension sector fell to the level of 7.3% of GDP compared to 2023, 7.8%, which was this indicator before the pandemic. There is every indication that the pension policy has failed today, the social pension announced today, which was declared by the government here eight years ago as a measure to lift a large part of the population and pensioners out of poverty, has failed. And I firmly believe that all reforms that affect more than the mandate of a government should be joint reforms, reforms that, on the one hand, fundamentally affect the system, but on the other hand are also sustainable over time, which is not the case with a change of one year on the other hand”, Tabaku said in her speech to the gathering.

On the other hand, Gonxhe emphasized that with the regulation adopted in 2014, he had curbed the deficit and increased the number of contributors.

“I should dwell a little on the failure of the reform, which according to the data has not turned out to be such, on the contrary, it is one of the most successful in the pension sector. In 2014, the deficit was 2% of GDP and the trend was worsening, threatening the financial sustainability of the entire system. The pensions provided under the system were very low and there were caps on the maximum pensions, which discouraged citizens from participating or continuing to work by reporting real wages. The reform managed to contain the deficit.

Thanks to this reform and the fight against informality that the government has carried out and continues to wage on a daily basis, the number of contributors and contribution income has increased from around 600,000 in 2014 to 827,000 today. From 61 billion ALL in premium income in 2014, we are at 124.6 billion in 2023,” Gonxhe said.

Tabaku Gonxhe Italian pension

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