Report on the Long-term Sustainability of Public Finances (April 2019)

The long-term sustainability of public finances was not achieved in 2018. The long-term sustainability indicator reached 1.32 % of GDP, thus moving away from the low risk threshold for long-term sustainability. In comparison with 2017, it worsened by 0.13 % of GDP. In order to keep the general government debt below the debt ceiling (50 % of GDP) over the next fifty years, additional measures on the revenue or expenditure side amounting to some 1.32 % of GDP, which will permanently improve the general government balance, would have to be adopted in the medium term (beyond the baseline scenario assumptions). This estimate does not include the negative impact resulting from the introduction of the retirement age cap which will worsen the long-term sustainability by an additional 1 % of GDP.
 
 
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