Investor Presentaiton

Comparing policy options Policy options Deficit at peak year (in pp) Impact on employmen Impact on GDP Other effects t Relaxing mandatory +0.2 (in percentage) Marginal (in percentage) Marginal Bridge coverage of "unlucky" workers contribution period Increase effective capital -0.5 -0.8 -1.7 tax rate by 2.2 percentage points. Increase self-employed -0.2 -0.7 -0.8 effective contribution Foreign capital losses are fully taken account, but are likely to be lower in practice, as transfer of production units abroad take time. Increase in fairness, increased tax evasion of self-employed rate by 5 points Increase SRA until 67 -0.7 +3 +3 Productivity losses, actual participation projected Old pensions indexed -0.8 Limited Limited with inflation likely lower than Impact on GDP likely negative but precise estimate would require much more complicated macroeconomic modelling with heterogeneous agents. 28

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