Pension Systems (Green Paper)

In its Green Paper „Adequate, sustainable and safe European pension systems”, published on 7 July 2010, the Commission addresses all the challenges that pay-as-you-go and funded pension schemes are facing. With regard to the pay-as-you-go – usually public – systems, the Commission sees urgent need for action in order to tackle demographic change. Regarding funded systems, the Commission manly calls for EU-wide, harmonised regulation and supervision. The Commission’s aim is to improve the sustainability and security of pension systems. Furthermore, the Commission is considering whether or not it should define “when” pension is adequate.


The Commission draws the right conclusions regarding public pension systems. However, the EU is not empowered to act in this area. There is neither legislative competence nor justification for a European definition of “when” a retirement pension is “adequate”. In the case of funded pension schemes, the Commission proposes measures improving the protection of investors which, however, also lead to significant losses in profitability, competition and the freedom of individual choice.