Without mandatory retirement savings plans, state debt could reach 1000% of GDP

If the Czech Republic fails to introduce mandatory retirement savings plans as part of the reform of the pension system, it will soon find itself bankrupt, according to leading Czech economists. During a presentation of the basic parameters of pension reform on Thursday, economic analyst David Marek estimated that the Czech Republic will accumulate a debt of 280 percent of its GDP in the next fifty years, and 1000 percent by 2075, if mandatory savings plans are not enforced. The planned reform of the pension system is scheduled for 2006. The country's debt currently totals 40 percent of the GDP.