The European Commission (EC) has asked Slovakia to remove investment restrictions on statutory pension funds that were established in the second pension pillar as part of pension reform.
The EC consider the limitations an infringement of a treaty governing the free movement of capital. If the EC does not receive a satisfactory reply within two months, it may refer the matter to the European Court of Justice.
Slovak law prohibits pension fund management companies (DSS) from investing more than 30 percent of their assets in other EU states, or more than 20 percent in securities issued or guaranteed by other EU states. Such restrictions would not apply to Slovakia, the EC reported on its website.
The Commission rejected Slovak authorities’ justification that the law protects society’s interest in the development of the Slovak capital market. SITA
Compiled by Zuzana Vilikovská from press reports
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