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


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