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The implications of ageing on the European social welfare model, where the current generation of working people pay the benefits of the current generation of retirees, have been so widely recognised that there is a danger of "pension fatigue" overtaking electorates.

I'm surprised they aren't looking at the "Chilian Model" as an answer, much as the GOP is trying to do on a limited scale. The successful results are right before their (and our) eyes.

No doubt the problem (there as well as here) is, it is so easy to demogogue. Plus, it takes power away from the politicians, and we certainly can't have that!

The alternative is financial collapse and societal chaos, which to socialist politicians is preferable to successful capitalist schemes. That means they get to play Savior again for at least another round.

The European economy(sans new eastern european countries)has very deeprooted problems. The real players are not politicians, but labor unions that control everything from wages to benefits. It is overregulated. They are sitting ina leaky boat with spoons to bail out the water. Every attempt by the politicians to make changes is immediately opposed by Labor demanding more and more, even though the unemployment is increasing. Today there is no foreign investment in Germany because of high cost of doing business. The Eastern countries are getting investment and the "old Europe" is trying to bring them into the fold and milk them for all they are worth. If you read the proposed "Constitution" you will see that the "Compassionate Slave Market" is alive and well.
Throw in the politicians who are only attempting to patch the holes created by Socialism. No one is able to completely overhaul the system (which is needed). After all, can you imagine anyone campaigning on slashing wages and benefits and be able to win?

I'm surprised they aren't looking at the "Chilian Model" as an answer, much as the GOP is trying to do on a limited scale. The successful results are right before their (and our) eyes.

The "Social Security Trust Fund" is simply two sets of books. It looks like an asset on paper, but since it's invested in government bonds it is an equal-and-opposite liability as well; the bonds are simply an instrucition to take the money out of the Treasury.
The only way out of this box is for the SSTF money to be invested in real assets such as stocks or mortgages on privately-owned assets.
Socialism is a system for seperating responsibility from authority.
And that is both injustice and bad management.