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Greece, Latvia, Ireland, Spain and Great Britain are the five EU countries, which will have the biggest fiscal problems as a result of the economic crisis. Those countries will have to take serious measures for increasing the budget income and for lowering the public expenses. On the other end, are the countries, which have the least problems – Czech Republic, Cyprus, Lithuania, Malta, Holland, Romania, Slovenia and Slovakia. The European Commission determined Luxemburg and Greece as the two countries, which will have to pass through great financial difficulties due to the advance in age of the population.

In a report about the long term strengthening of public finances and recovery of economy, the European Commission stresses that the undertaken measures by the governments for getting out of the crisis, have worsened the public finances and now is the time for decisive reforms for strategic recovery. According to the Commission those reforms need to be following three directions – lowering budget deficit and national debt, lowering the unemployment level and reform in the social care system. “Strengthening public finances is the most important factor for going out of the economic crisis,” said commissioner Joaquin Almunia.

The Commission stresses on the necessity to increase retirement age in relation to the average life expectancy rate. Forecasts tell that until 2060 the average life expectancy will increase from 82 to 88 years old and the retirement age will increase only from 62 to 63.

More specifically for Greece Brussels insists on urgent reforms for putting a stop to the fiscal chaos, which now has a price of €32.5 billion. If the insurance sector does not undergo any reforms, in 2060 Greece’s national debt will reach the fantastic amount of 884% of the GDP. The Commission also forecasts that the budget deficit for this year will be 14.1% of the GDP.

EC representatives are arriving in Athens today and will be introduced to the economy and insurance sectors of the country. The Commission is certain that the labor force in Greece is decreasing and the relation between older and younger people is increasing. Basically this means mining the insurance system and without urgent changes in the retirement funds, it can explode.