EUROPE – The European Commission looks set to act tomorrow against six European Union member states for discriminating against foreign pension funds.

The countries are: Denmark, Italy, Belgium, Spain, France and Portugal. Denmark will be issued with a so- called “reasoned opinion” as a preliminary to court action. The other five member states will receive a letter of formal notice which is the first step of the infringement procedure provided for in Article 226 of the EC treaty.

By taking action against the countries, the Commission is signalling that they have breached EU treaty law concerning freedom of movement of workers, freedom to provide services, freedom of establishment and freedom of movement of capital.

This action by the Commission compliments EU moves towards a pan-European pensions directive.

Internal market commissioner Frits Bolkestein in 2001 urged companies and employees to report any cases of tax discrimination concerning the transfer of occupational pension schemes between member states.


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