Prime Minister Costas Karamanlis on Thursday outlined a series of proposals aimed at reform of the country's ailing social security system, one of the most crucial issues facing Greece over the next decades, speaking during an address to his ruling party's central committee nearly a week after officially requesting early elections.

In prefacing his proposals, Karamanlis ruled out three of the more painful measures feared by pensioners and unions, namely, an increase in retirement ages and contributions, or a decrease in pension levels.

In terms of proposals, Karamanlis unveiled no less than 11, including a radical restructuring of the numerous primary and supplementary pension funds in the country of 11 million, as well as mergers of funds, both in terms of sectors and between primary and supplementary funds. The latter, he said, will come only after dialogue with social partners, unions, the opposition etc.

Conversely, the prime minister said continuing growth in the country, in tandem with savings from trimming a 'wasteful and ineffective' state, will generate enough resources to adequately fund the social security system in the long term.

Additionally, he cited better management of funds' assets; stepped up efforts to curb social security contribution evasion; tighter financial controls in the healthcare system; incentives for individuals to remain in the work force even after reaching retirement ages; stricter controls over procedures granting disability pensions; reform and restructuring of the "hazardous and heavy" occupations regime, as well as a high-profile proposal of matching the European Union average in wages and pensions within five to seven years.

In pointing to his government's accomplishments over the past three and a half years, Karamanlis reiterated that an increase in the low pension bonus (EKAS) to 230 euros and the base farmer's pension to 330 euros, by the end of 2008, has already been finalised via legislative acts.

'Citizens demand reforms; they demand that we move faster, more decisively; they demand a reinforced mandate for reforms via a strong popular mandate,' he told members of ruling New Democracy's central committee.

Finally, Karamanlis reminded that education reforms will also take centre stage in his next government, including constitutional revision.