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Pension Reforms After the Crisis: Bringing Adequacy Back in the Domestic and EU Policy Equation?

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The Future of Pension Plans in the EU Internal Market

Part of the book series: Financial and Monetary Policy Studies ((FMPS,volume 48))

Abstract

This chapter analyses the intense reforms which have taken place in the European Union after the Great Recession (2014–2019) by looking at how Member States addressed the adequacy side of pensions schemes. It also assesses the discourse at EU level regarding pensions for the period 2011–2019, demonstrating an incremental but visible evolution towards a more socially oriented EU approach. Principle 15 of the European Pillar of Social Rights stresses that all workers have the right to an adequate income. Both the Member States and the EU have begun to bring adequacy back in the policy equation, but the shadow of previous austerity policies still looms large over pension reforms.

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Notes

  1. 1.

    Haas P.M. (1992), « Introduction: Epistemic Communities and International Policy Coordination », International Organization, vol. 46, n° 1, p. 1–35.

  2. 2.

    Slavina Spasova, on behalf of the Network Core Team (NCT) of the European Social Policy Network, was the main contributor to the chapter on reforms of the PAR 2018.

  3. 3.

    However, the share of the benefit subject to indexation is only equivalent to 50% of the average insured wage for the previous year.

  4. 4.

    This section does not refer to statutory funded pension schemes. These were subject to extensive reforms during the period 2009–2014 (see PAR 2015). Only some countries have proceeded to minor changes in these schemes (e.g. Bulgaria, Estonia, Lithuania, see European Commission 2018c, Vol. II).

  5. 5.

    The financial APE consists of a loan allowing an individual to leave the labour market up to 3 years and 7 months earlier than the legal pensionable age (i.e. at 63 years) by means of a loan issued by a bank. The “social APE” is state-subsidised. It allows certain categories of disadvantaged workers, with at least 30 years of paid contributions, to exit early from the labour market (also up to 3 years and 7 months before the legal pensionable age) through the provision of an allowance of maximum €1500/month.

  6. 6.

    The EU’s involvement largely predated the crisis: in the context of the Broad Economic Policy Guidelines (BEPG), the Member States were invited, since 1999, to “review pension and health care spending in order to be able to cope with the financial burden on welfare spending of the ageing population” (Council of the EU 1999).

  7. 7.

    Guidi and Guardiancich (2018) provide a comprehensive quantitative analysis of the CSRs specifically focusing on pensions, between 2011 and 2016.

  8. 8.

    For a more detailed analysis see: Louvaris Fasois (2018b).

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Author information

Authors and Affiliations

  1. European Social Observatory (OSE), Brussels, Belgium

    Slavina Spasova & Bart Vanhercke

  2. Centre d’étude de la vie politique (CEVIPOL), Université Libre de Bruxelles, Brussels, Belgium

    Slavina Spasova

  3. European Association of Paritarian Institutions (AEIP), Brussels, Belgium

    Christos Louvaris Fasois

  4. HIVA – Research Institute for Work and Society, University of Leuven, Leuven, Belgium

    Bart Vanhercke

Authors
  1. Slavina Spasova
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  2. Christos Louvaris Fasois
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  3. Bart Vanhercke
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Correspondence to Slavina Spasova .

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  1. CIDEEFF - Center for European, Economic, Financial and Tax Law Research, University of Lisbon, Faculdade de Direito de Lisboa, Alameda da Universidade, Lisbon, Portugal

    Nazaré da Costa Cabral  & Nuno Cunha Rodrigues  & 

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Spasova, S., Louvaris Fasois, C., Vanhercke, B. (2019). Pension Reforms After the Crisis: Bringing Adequacy Back in the Domestic and EU Policy Equation?. In: da Costa Cabral, N., Cunha Rodrigues, N. (eds) The Future of Pension Plans in the EU Internal Market. Financial and Monetary Policy Studies, vol 48. Springer, Cham. https://doi.org/10.1007/978-3-030-29497-7_16

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