Free choice. “This is an issue that matters for European citizens because everyone wants to rely on a safe pension and a number of contribution years that will never be lost.” This is how Miklos Péthelyi, Hungarian Minister for Employment and Social Affairs and chairman of this Council of Ministers, summed up the stakes around the issue of pensions in Europe. The Twenty-Seven looked at the Green Paper presented by the European Commission in July (see our dispatch No. 100547). The Member States reasserted their competence for this issue, since the EU can only intervene within the framework of the open coordination method, i.e. determine joint objectives and coordinate national policies. László Andor, European Commissioner in charge of this file, clearly explained that the Commission’s method wouldn’t be used: “The Commission won’t support common retirement age because schemes are too different.” He insisted, “We’re not going to develop standards or push to a European standard.” The Commission added that the States and workers should retain free choice for their pension scheme. The 27 European countries have different schemes, some favoring pay-as-you-go systems while others favor funded schemes. László Andor said “the priority is to keep enough space for the private pillar,” adding that it is important to have “enough autonomous management to maintain flexibility in workers’ choice.”
orkers should retain free choice for their pension scheme. The 27 European countries have different schemes, some favoring pay-as-you-go systems while others favor funded schemes. László Andor said “the priority is to keep enough space for the private pillar,” adding that it is important to have “enough autonomous management to maintain flexibility in workers’ choice.”
Link with life expectancy. In Brussels, the pension issue has been the subject of tensions for several weeks. Several Member
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