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Stop and Go in the Italian Pension Reform Process

1. The Government — Unions Agreement: An Overall Evaluation

On July 27th, 2007 the Government and the Trade Unions reached an agreement (known as the ‘welfare protocol’) which has subsequently become a law proposal, submitted to Parliament and included, as a separate bill, in the 2008 financial law. The immediate goal of the bill is to prevent the former (2004) pension law from becoming effective, as originally stipulated, at the beginning of 2008, and consequently to avoid the rather abrupt increase in retirement age (three years) established by that reform, which would cause a sharp discontinuity of treatment between adjacent cohorts (the so-called ‘scalone’ — big step — as opposed to a smooth increase in retirement age).
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