The only future pensioners who can look forward to upcoming change are the system’s chosen few, who will be richly rewarded by the Golob government with exceptional pensions. Member of the European Parliament Romana Tomc has declared this reform to be the biggest scam since Rop’s pension reform.
Robert Golob‘s government has presented a pension reform that has been met with strong reactions from critics. Many consider it a populist move without any real changes that would solve the financial unsustainability of the pension system in the long term.
Economist Matej Rigelnik pointed out that the pension fund already receives more than 1.4 billion euros annually from the budget, which translates into 700 euros per capita. Critics say the pension system has long been bankrupt and has been drawing billions of euros unjustifiably from the budget.
On X, Rigelnik wrote: “All that will be left of the pension reform will be the winter allowance, also known as the Christmas bonus. It will be paid for the first time 5 months before the elections. This is how votes are bought. This is how socialism is practiced on the backs of net contributors. And this is the Slovenian apocalypse of reality. 50 shades of red,” and then added: “When it comes to the sustainability of the system, it must be made clear to the entire Slovenian public that the system is not sustainable because, even before the winter bonus, or Christmas bonus, we are already spending more than 1.4 million euros per year from the budget for the pension coffers, or 700 euros per inhabitant of Slovenia!”
A scam of pensioners?
MEP Romana Tomc also criticised the reform on the social media X, claiming that Golob’s reform is “the biggest deception of pensioners since Rop’s pension reform.” She warned that the government is turning the pension system into a social system, turning pensioners into welfare recipients. In her opinion, the only future pensioners who can look forward to the changes are “the chosen few of the system, who will be richly rewarded by the Golob government with exceptional pensions.”
She also pointed out that Slovenia’s demographic trends are extremely bad, and birth rates are at record lows, so higher pensions and the sustainability of the system are mutually exclusive. She pointed to the extension of the period for calculating the pension base as a key problem, as this will drastically reduce pensions.
Slovenia’s economic picture – the ignored component of the pension reform
Some economists have pointed out that the future of the pension system depends mainly on the general economic situation, economic growth and employment. Over the past thirty years, Slovenia has had more problems during periods of economic crisis than it did as a result of demographic change. However, as current data shows, the Golob government is ignoring these economic laws. The Institute of Macroeconomic Analysis and Development (UMAR) has predicted that this year’s economic growth will be only 2.1 percent, down from the 2.4 percent previously forecast. Investment has fallen and industrial production is in decline in all key sectors – even more so than in other countries of the European Union. Meanwhile, the government continues with increased public spending, which is adding to the burden of the state budget.
Christmas bonus as a pre-election manipulation?
One of the most highlighted “reform” innovations is the winter allowance or Christmas bonus for pensioners, which will be paid five months before the elections. The amount of the allowance will be between 150 and 250 euros. Robert Golob has presented the measure as a “long-term commitment to a decent autumn of life”, but critics consider it to be mere pre-election buying of the votes. MP Andrej Hoivik of the Slovenian Democratic Party (Slovenska demokratska stranka – SDS) took to the X social network to explain what the government’s “allowances” actually mean. “What this means in practice: 99.99 percent of pensioners with an average pension of 900 euros will pay 108 euros in long-term care tax per year from the 1st of July onward, as well as 2 euros more each month = 24 euros more for the compulsory health tax and 1.28 euros more each month = 15 euros more per year for the national media outlet, Radio-Television Slovenia (RTVS) contribution. That is exactly how much more (108 + 24 + 15 = 147 euros) you will get with your pensions each year. Oh, except for the the 0.01 percent who will get a Christmas bonus EVERY MONTH of 1,200 to 2,400 euros plus 150 euros for the annual allowance,” he explained. The amount of the supplement is to be gradually increased until 2030, when it would be 250 euros.
Golob’s pension reform thus leaves more questions than answers. Critics point out that it does not address the system’s core problems, but merely masks its unsustainability with pre-election goodies such as the Christmas bonus for pensioners. At the same time, Slovenia is facing economic problems, which should be the central issue in addressing the future of the pension system. Instead of implementing real reforms, the government seems to be merely delaying systemic measures, while at the same time providing benefits only to a select few.
A. H.
