What might the results be?
A securitization in the wake of what we’ve already experienced and which, moreover, is a recurring practice: These securitized debt instruments are sure to be differentiated within them, as regards the risk of return and repayment. Securitization may be necessary to allow the banks to cope with the difficulties of making profitable debt securities in a period of virtually zero interest rates, if not negative. It is possible that banks will try to increase the volume of pension advances, freeing budgets through securitization.
Undersecretary to the Prime Minister Tommaso Nannicini claims that this is not a penalty but a repayment installment, and it will vary depending on the category of workers involved and not fall to their heirs.
That’s the thought, because otherwise he would not have proposed it. It seems clear that the credit and debt that will be flexible enough and will allow someone to anticipate retirement will burden beneficiaries. They will have to pay out well, even in 20 years, but the retiree will have to return it. With pensions at the levels that they are, I wonder if this is not an incitement to work illegally. They are still sums which calculated over a period of one year may be important for a person who has a low pension.
Is this another step toward replacing salaried workers with indebted individuals in the European welfare states?
This is what I mean by the bio-economy. The bio-economy revolves around an individual in debt and is the form of governance of the society through debt generalization. I see a strong parallel between the young people who go into debt to study in the U.S. and the elderly who go into debt to be able to stop working in Italy. Now our life cycle begins with active debt and ends with debt. Social rights that developed over the 20th century from the struggles of the workers movement are turning into financial stocks. From real estate, the credit to consumption or to social security, the logic is always the same: to anticipate in order to mortgage the future.