The European Commission launched on July 7th, a wide consultation aiming to gather the views of all stakeholders on the future of pensions’ systems in Europe. Designing EU pension rules is largely a responsibility of Member States.

Through this consultation, the European Commission does not question this competence but it recalls the scope of EU action in the field of pensions.

Commenting on the EC paper on pensions, Leonardo Sforza, head of EU Affairs and Research at Hewitt Associates and Chairman of the EChr scientific committee, said: "this Green Paper and its background documents represent the most comprehensive review made by the Commission on pensions for over a decade. In terms of method, it shows the inter-connection of different policy areas and the importance of an ever closer co-operation among different departments — beyond administrative silos. On the substance of future policy direction, it can be instrumental in tackling unfulfilled business expectations on the simplification of cross-border pension arrangements. These gaps — some of which could be immediately addressed by improving the transparency, predictability and coherence of statutory requirements — continue to undermine the effectiveness and credibility of the European Single Market."

Leonardo Sforza continued: "The deployment of a more business-friendly regulatory environment for pensions is vital for employees and pensioners and for the competitiveness of the European system. In that respect, the employer's perspective on thepensioners and for the competitiveness of the European system. In that respect, the employer's perspective on the subject of costs and the affordability of pension promises merits much greater and thoughtful attention than is currently the case."

“A 'Green Paper' is generally a good opportunity for practicing democracy within the EU decision-making process. In particular, it offers all stakeholders — beyond just EU bodies and institutional representatives — an opportunity to share their views on the issues at stake as well as suggesting possible options for action based on their direct experience. In the context of pensions, such an approach is even more important before adopting new decisions or legislative proposals given the long-lasting impact they may have on people, organisations and individual Member States' policy responsibilities in the area of retirement provision".

Early July 2010, the European Commission released the results of a Eurobarometer (European survey) dedicated to geographical and labour market mobility. Among the most interesting findings of the report are the followings:

• 17% of Europeans envisage working abroad in the future, ranging from 51% in Denmark to just 4% in Italy;
• 34% of Europeans rate the chance of finding a job abroad better than at home;
• Unemployment is a key reason to move: 48% of Europeans would consider moving regions or countries for work should they lose their work.

On the same day, the European Commission presented a Communication entitled 'Reaffirming free movement of workers: rights and major developments'. The objective of the document is to give a full picture of the rights that may claim EU migrant workers, taking into account legislative and case-law developments.

The European Commission released a “Green Paper on Corporate Governance in Financial Institutions and Remuneration Policies” (in financial institutions and listed companies) on June 2nd, 2010, which opens a large public consultation on this topic that will end by September 1st, 2010.

The so-called “European Executive” explains that this document is part of a global package which aims at contributing to the prevention of a future financial crisis and at strengthening the financial system. And indeed, the Green Paper has been presented jointly with a proposal from the Commission to increase the supervision of Credit Rating Agencies.

Internal Market and Services Commissioner Michel Barnier explained that the European Commission considers that “true crisis prevention starts from within companies […] financial institutions themselves need to change. We need to ensure more effective internal controls; promote better risk management; strengthen the role of supervisory authorities; and existing rules on sound remuneration policies should be implemented quickly to help curb excessive risk-taking”.

More information to be found in the July 2010 EChr newsletter.