Unemployment insurance reserves not excessive

The Unemployment Insurance Fund reserves have seen rapid growth in recent years and will likely amount to 580 million euros – more than 3 percent of the country’s GDP.
Finance Minister Jürgen Ligi said today he doesn’t agree with criticism that the reserves have swelled to an unreasonable level.

“There’s no one single position on what the optimum level of reserves should be. Only oil producing states have such a thing as excessive reserves, probably. The recent Ecofin also sounded a call to amass reserves to prepare for crisis and the recent news about the first quarter GDP contraction reminds us that unemployment insurance is the most vulnerable part of public finances, and has the most fluctuation,” Ligi told uudised.err.ee.

Source: ERR via Estonian Review

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: