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A Guaranteed Minimum Income for Europe’s Elderly. Options and Pitfalls in the Design of a Harmonised Basic Pension Scheme in the European Union

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  • Tim Goedemé
  • Wim Van Lancker

Abstract

Harmonisation of social security systems is back on the agenda of European policy makers. However, the introduction of a harmonised scheme poses severe challenges. In this article we explore some options and difficulties associated with the implementation of a harmonised minimum income protection scheme for the elderly. As earlier contributions to the literature already outlined the practical and ethical arguments in favour of a European basic pension, we take the proposal of a European basic income for the elderly as our starting point and assume that a basic income is philosophically and ethically justified. In this paper, we try to broaden the scope of the discussion to the various and often technical options, difficulties and pitfalls associated with the practical design and implementation of a harmonised European minimum income scheme. Hence, we first offer an overview of minimum income guarantees for the elderly in Europe. Second, we make a detailed assessment of the issues involved in the design of a basic pension. Third, we shed some light on the European dimension of this proposal to, finally, conclude with a sketch of three possible 'basic pension scenarios'. Our findings confirm that it is one thing to be in favour of a harmonised scheme of minimum income protection, but another to design a realistic and politically feasible proposal.

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Bibliographic Info

Paper provided by Herman Deleeck Centre for Social Policy, University of Antwerp in its series Working Papers with number 0901.

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Date of creation: Oct 2009
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Handle: RePEc:hdl:wpaper:0901

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Web page: http://www.centreforsocialpolicy.eu
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Keywords: basic income; elderly; European Union; Harmonisation of social security; minimum income protection; pensions; social policy reform;

References

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  1. Parijs, Philippe Van, 1997. "Real Freedom for All: What (if Anything) Can Justify Capitalism?," OUP Catalogue, Oxford University Press, number 9780198293576, September.
  2. Atkinson, Tony, et al, 2002. "Microsimulation of Social Policy in the European Union: Case Study of a European Minimum Pension," Economica, London School of Economics and Political Science, vol. 69(274), pages 229-43, May.
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Cited by:
  1. GAUTIER, Axel & WAUTHY, Xavier Yves, . "Competitively neutral universal service obligations," CORE Discussion Papers RP -2455, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  2. Vandeninden, Frieda, 2012. "A Simulation of Social Pensions in Europe," MERIT Working Papers 008, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
  3. Frieda Vandeninden, 2010. "Social Pensions in Europe: The Aim, The Impact and The Cost," CREPP Working Papers 1007, Centre de Recherche en Economie Publique et de la Population (CREPP) (Research Center on Public and Population Economics) HEC-Management School, University of Liège.

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