Labour Ministry says pensions will get paid out

The Czech Labour Ministry has denied a report in Wednesday’s edition of Lidové Noviny that money is running out for old-age pensions and the shortage could make itself felt as early as this autumn. Czech Labour and Social Affairs Minister Petr Šimerka has assured the public that the money is there and pensions will be paid out as mandatory expenditures. The Labour Ministry has admitted though that social expenditures in 2010 could be several billion crowns higher than revenues. Experts say that in view of the country’s growing budget deficit and aging population a reform of the pension system should not be put off any further.