Brussels, 16/02/2011 (Agence Europe) - In Strasbourg on Wednesday 16 February, the European Parliament (EP) called on member states to ensure that pension schemes can sustainably deliver a decent level of income to the growing number of retired people, despite the economic crisis, and urged discussion of the issues of portable pensions and inequalities faced by women and older workers. The EP voted by 535 votes to 85, with 57 abstentions, to pass the report by Ria Oomen-Ruijten (EPP, Netherlands) which assesses in detail the European Commission communication Towards adequate, sustainable and safe European pension systems.
In pensions, the principle of subsidiarity continues to apply, said Oomen-Ruijten after the vote. In the view of Employment, Social Affairs and Inclusion Commissioner László Andor, this report sends a “clear, strong” signal to the Commission on the follow-up to its Green Paper on the future of retirement pensions. The commissioner expects that a summary of submissions to the Green Paper will be published at the start of March. The White Paper, publication of which is scheduled for the second half of this year, will be accompanied by an appropriate impact assessment, which will once again give all stakeholders the opportunity to take part in the debate.
In the EP debate, Oomen-Ruijten rejected proposals to link pensions and increased life expectancy, simply because life expectancy varies from one member state to another. She argued for a re-evaluation of the pensions systems at member state level with the involvement of the social partners. In her view, there should be no question of people working longer as that would require flexibility of contracts and working conditions. She said, too, that more should be done to protect savers and that an impact study on solvency should be carried out before legislating. What is required at European level? “Member states must act.”
Andor welcomed the report which backs the Commission's overall approach. In several places, the report highlights the link between adequacy, security and sustainability and states where the EU can bring added value. The Commission is currently completing its assessment of the debate on the Green Paper (more than 100 meetings were held with stakeholders and at least 1,700 submissions were made, the commissioner said) and, given the urgency of the situation, the Commission has already begun preparatory work on drafting the White Paper. One of the successes of the European economic and social model has been the prevention of poverty “and this is something we must continue to work on and to help member states take the right decision so that the pensions schemes are well equipped”, Andor noted. The Commission recognises that the current reforms contain an element of risk as future pensions depend on the long-term development of the labour market and of the labour force. Jobs have to be created, too, for the handicapped and financial stability improved, the commissioner stated.
On behalf of the EP economic and financial committee, George Sabin Cutas (S&D, Romania) said that the reform of pensions should be accompanied by reform of the labour market. He argued for a “European retirement pension”. Cornelius de Jong (GUE/NGL, Netherlands), for the EP internal market committee, explained why he thought two matters still pending should not be passed: 1) making European pensions systems a matter for European economic policy - “I don't know if it's really responsible to do that”; 2) the recommendation on increasing retirement age to take account of the ageing population - “this is unacceptable, especially in the Netherlands where it is not deemed necessary”. Speaking for the EP women's rights committee, Barbara Matera (EPP, Italy) called for account to be taken of the differences that exist between men and women (women are at a disadvantage as they more frequently interrupt their careers for family reasons) in the way pensions are calculated.
For the EPP Group, Csaba Õry highlighted the need for economic cooperation in pensions systems. Frederic Daerden (S&D, Belgium) said that this report on the future of pensions in Europe was until now “the only European institutional document running counter to the view set out by the Commission, in its annual growth survey, and the Merkel-Sarkozy duo in their document on the Competitiveness Pact”. He said these documents directly challenge the first pillar and the automatic extension of the legal retirement age as a function of life expectancy (when the EP is calling for the first pillar to have a key role on pensions, with the other pillars playing complementary roles). The EP, he said, was sending “our commissioner a clear message, a social and progressive message which he will take into account, I hope, in the White Paper”.
The same criticism came from Ilda Figueiredo (GUE/NGL, Portugal), who said that the Competitiveness Pact, “a paper from the Board led by Angela Merkel”, is trying to “launch further assaults on the public, universal social security system, raise retirement age, lower wages, and cut the link between wages and inflation for the sole benefit of the financial sector which wants to make further speculative profits through the private funding of pensions”. She called for a stance to be taken against the path being pursued by Europe, one based on anti-social policy. She said the EP report was in line with this policy. “We presented an alternative resolution which shows that it is possible to improve retirement conditions and pensions without increasing the retirement age. It can be done through labour rights, for young people in particular, better wages and increased taxes on the financial sector and financial operations”, she stated. (G.B./transl.rt)