{
  "title": "Are Europe's Social Security Finances Compatible with EMU?",
  "publication": "IMF Policy Discussion Papers, March 1, 1997",
  "sourceUrl": "https://www.imf.org/en/publications/imf-policy-discussion-papers/issues/2016/12/30/are-europe-s-social-security-finances-compatible-with-emu-2119",
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  "summary": "Pursuant to the Treaty of Maastricht, members of the European Union (EU) intend to participate in the Economic and Monetary Union (EMU), in part through convergence toward specified limits on the overall deficit and gross debt of general government.",
  "sections": [
    {
      "heading": "Summary",
      "content": "- Author: George Kopits\n- Publication date: March 1, 1997\n- Series: Policy Discussion Paper No. 1997/003\n- Main thesis: In several EU members, the financial imbalance of social security institutions may constitute an impediment to meeting EMU deficit and debt convergence requirements established by the Treaty of Maastricht. Given a constraint on further payroll tax increases, most countries will need to undertake major reform of public pension and health-care systems to ensure adherence to the EMU fiscal criteria in the medium to long run."
    },
    {
      "heading": "Key findings",
      "content": "- The Treaty of Maastricht requires convergence toward specified limits on the overall deficit and gross debt of general government.\n- Financial imbalances in social security institutions in several EU members may impede meeting these EMU fiscal requirements.\n- There is a constraint on further payroll tax increases in many countries.\n- Most countries will need major reform of public pension and health-care systems to meet EMU fiscal criteria in the medium to long run."
    },
    {
      "heading": "Policy implications and recommendations",
      "content": "- Undertake major reform of public pension systems.\n- Undertake major reform of public health-care systems.\n- Recognize that relying on further payroll tax increases is constrained and therefore not a broadly feasible solution."
    },
    {
      "heading": "Subjects and keywords (as listed)",
      "content": "- Subjects: Expenditure, Financial institutions, Health, Health care, Labor, Pension spending, Pensions, Securities, Unemployment benefits\n- Keywords: benefit, EU accession, EU member, Europe, Germany, Health care, health-care benefit, PDP, Pension spending, Pensions, Securities, sick pay, social security institution, Unemployment benefits\n\n---\n\n Content in this bundle\n\n- Are Europe's Social Security Finances Compatible with EMU? - PPAA/97/3\n  - Are Europe's Social Security Finances Compatible with EMU? - PPAA/97/3 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Are Europe's Social Security Finances Compatible with EMU? - PPAA/97/3 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/imf-policy-discussion-papers/issues/2016/12/30/are-europe-s-social-security-finances-compatible-with-emu-2119"
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    "Authors: George Kopits",
    "Published: March 1, 1997",
    "Series: IMF Policy Discussion Papers",
    "DOI: https://doi.org/10.5089/9781451974034.003",
    "Author: George Kopits",
    "Publication date: March 1, 1997",
    "Series: Policy Discussion Paper No. 1997/003",
    "Main thesis: In several EU members, the financial imbalance of social security institutions may constitute an impediment to meeting EMU deficit and debt convergence requirements established by the Treaty of Maastricht. Given a constraint on further payroll tax increases, most countries will need to undertake major reform of public pension and health-care systems to ensure adherence to the EMU fiscal criteria in the medium to long run.",
    "The Treaty of Maastricht requires convergence toward specified limits on the overall deficit and gross debt of general government.",
    "Financial imbalances in social security institutions in several EU members may impede meeting these EMU fiscal requirements.",
    "There is a constraint on further payroll tax increases in many countries.",
    "Most countries will need major reform of public pension and health-care systems to meet EMU fiscal criteria in the medium to long run.",
    "Undertake major reform of public pension systems.",
    "Undertake major reform of public health-care systems.",
    "Recognize that relying on further payroll tax increases is constrained and therefore not a broadly feasible solution.",
    "Subjects: Expenditure, Financial institutions, Health, Health care, Labor, Pension spending, Pensions, Securities, Unemployment benefits",
    "Keywords: benefit, EU accession, EU member, Europe, Germany, Health care, health-care benefit, PDP, Pension spending, Pensions, Securities, sick pay, social security institution, Unemployment benefits",
    "**Are Europe's Social Security Finances Compatible with EMU? - PPAA/97/3**"
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