In 2012 the Social Security system's Reserve Fund held 63 billion euros, and this fund will be reduced by 10 billion euros by the end of this year.
The system is eating through savings at a fast pace. In two years it has used 23.6 billion euros. It is possible that by 2019 it will have nothing left.
Yesterday the Ministry of Employment announced that it would take out 5.4 billion euros from the Reserve Fund. An economic recovery, whenever it arrives, will not solve the system's problem.
Deeper reforms are necessary, and we need a mixed pension system similar to the one used in Switzerland where public pensions and private plans are combined. Reforms set to go into effect in 2014 will fall short.
