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Social Security deficit less important than expected

It is expected to fall to -4.4 billion euros in 2017, according to the Social Security Audit Committee.

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Social Security deficit less important than expected

The Social Security deficit is expected to come down in 2017 at -4.4 billion euros, a figure close to target set by previous government, according to a summary of Social Security Accounts Committee (CCSS) . The general scheme, which is part of Social Security Old Age Solidarity Fund (SFV), is "close to balance" at -0.8 billion.

These results are better than those envisaged in July by same Commission, which forecasts a total deficit of - 5.5 billion in 2017. Effect of a "higher than expected" payroll growth, generating additional revenues by more than one billion euros.

Family branch in green

The deficit of general scheme (employees of private sector), which is 400 million euros higher than objective of previous government, is neverless reduced by 3.3 billion euros compared to 2016. As last year, accidents and old age have a surplus of 800 million and 1.5 billion euros respectively.

For first time since 2007, family branch would also go green, at 500 million euros, against a deficit of one billion euros a year earlier.

Conversely, disease branch remains clearly in red. Its deficit is reduced by € 1.2 billion compared to 2016. But this improvement "results in three-quarters of a transfer" to Medicare of FSV reserves "to tune of 0.9 billion in framework for establishment of pharmaceutical innovation financing fund "decided in last budget, Commission said. And it is less (1 billion euros) than expected by previous government.

The deficit of Old-Age Solidarity Fund (which pays unemployed pension contributions and minimum old-age pension) must stabilize at -3.6 billion euros.

Retirement branch in red

The pension sector would return to red: its deficit would decline by 1.6 billion euros, to stand at -100 million euros. In particular, re has been a sharp increase in number of benefits paid "under combined effect of end of lag in statutory retirement age" (departure flows would increase by 5.4% for only general scheme ) and a "higher pensions revaluation (+ 0.85% annual average)".

"The recent announcement by government of postponement to January 2019 of revaluation of pensions provided for by law on October 1, 2018", which should result in savings, "has not been taken into account", however specifies Commission.

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