Pension System Viability and Reform Alternatives in the Czech Republic (Electronic book text)

1. Against the background of the Czech Republic's preparations for EU accession, the authorities have sharpened their focus on the medium- and long-term fiscal risks arising from widespread off-budget activities and large contingent liabilities as well as mounting pressures from mandatory expenditures. However, a strategy remains to be developed that would address the structural weaknesses in the budget and place public finances on a sound medium-term path. This would include reform of the social security system in general and the pension system in particular, where finances have been deteriorating in recent years and population aging represents an additional burden for the future. At the same time, the living standard of pensioners has been eroded in the 1990s and distortions and inequities in the system have emerged and lead to calls from recipients for urgent changes.