Written by Issam Hallak.
On 19 March 2025, the European Commission unveiled its strategy for a savings and investments union with the goal of directing EU households’ savings towards productive investments. This policy includes a review of existing EU pension legislation to increase participation in supplementary pensions and recommendations for auto-enrolment pension frameworks.
The pan-European pension product (PEPP), introduced in 2019 through a regulation that became applicable in 2022, has only been registered in four Member States. Institutional investors have shown limited interest in this product, and improvements are likely to be the focus of the planned review.
Some observers argue that the PEPP is too restrictive for investment product providers in terms of cost and value guarantees. The product may also compete with existing pension savings products. Some Member States suggest establishing an inter-governmental framework as a preliminary test for a cross-border product, with the possibility of developing a model at EU level in a later phase.
Read the complete briefing on ‘Private financing of the EU economy through pensions‘ in the Think Tank pages of the European Parliament.
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