Pensions move to up spending, youth hit

(ANSA) - Rome, November 13 - Changes in the pension system planned by the government that would effectively lower the retirement age, allowing people to end their working lives when their age and number of years of social-security contributions reach 100, would have negative effects, the International Monetary Fund (IMF) said Tuesday. It stressed that a further increase in spending on pensions would increase the burden on the young and lead to lower employment rates among older workers.
    The IMF added that it was unlikely that the retirements expected would create the same number of jobs among the young and that it is necessary that excesses in the system be rationalized.
    Italian GDP will be 1.1% in 2018-2020 and then will fall, the International Monetary Fund said Tuesday.
    It also said the effects of Italian budget measures would be "uncertain" if the bond spread remained high.
    The IMF also said Italy must cut its debt or face risks of a recession.