Italy's constitutional court has overturned a key plank of the debt-laden country's pension reforms in a ruling that could require the government to pay retirees back at least 5 billion euros ($5.6 billion). In December 2011, when the country was under severe market pressure over its public debt, the technocrat government in power at the time had pushed through draconian austerity measures.
Among the reforms was a hike in the number of years of pension contributions, a change in the calculation of pensions to take into account salaries received through an entire working life rather than the most recent wages, as well as a halt in inflation-adjusted increases for pensions that are above 1,400 euros a month. The then social affairs minister Elsa Fornero had burst into tears when announcing the changes at a press conference.
Comments
Comments are closed.