AEC, KI a INESS v spolupráci s ďalšími partnermi organizovali medzinárodnú konferenciu v rámci Free Market Road Show 2013 na tému Šetriť alebo nešetriť: Zachránia Európu len úsporné opatrenia?, ktorá sa konala dňa 7. júna 2013 v Bratislave. Ďalšie súvisiace informácie nájdete na www.konzervativizmus.sk AEC, in cooperation with the Conservative Institute and INESS, and in association with international partners organized the Free Market Road Show 2013 in Bratislava on June 7, 2013. More information at www.institute.sk.

1. Source: Jagadeesh Gokhale, Measuring the Unfunded Obligations of European Countries
Policy Report No. 23 January 2009, National Center for Policy Analysis
THE TRUE DEBT OF EUROPE
(Official + Pension + Health + Welfare; as % of GNP)
Greece 875%
France 549%
United Kingdom 442%
Germany 418%
Italy 364%
EU 25 434%

2. Youth
Unemployment
in Europe
German Finance Minister
Wolfgang Schäuble warned
that failure to win the battle
against youth
unemployment could tear
Europe apart, and dropping
the continent's welfare
model would spark a
revolution.
(Reuters, May 28, 2013)

3. The father of the welfare state,
destroyed the crucial link between
effort and reward.
Results:
• Political manipulation,
• Demographic impossibility and
• Fiscal disaster.
Reich Chancellor Bismarck

4. CHILE 80: PARADIGM SHIFT
• Every worker has a mandatory personal retirement account, saves monthly
10% of his wage (substituted payroll tax), and benefit from power of
compound interest.
• At retirement: life annuity, programmed withdrawal, or mix. “Retirement” is
redefined to enhance personal choices (age, benefit level, inheritance).
• System managed by competitive private companies. Workers choose
among 5 mutual funds, with highly diversified portfolios.
• Role of government: market-friendly regulation, technical supervision, and
safety net paid with general tax revenues. Zero payroll tax.

5. THE TRANSITION: It can be done
• Guarantee benefits to retired people, i.e. protect your
grandmother’s check.
• Voluntary opt out, with recognition bond, for current workers.
PRA system for new entrants to labor force. Old system
fades away.
• Transition financing different in each country.
• Key requirement: educate the citizens. Intensive use of
media. Keep it simple.