By Martin Banks - 8th July 2010
There is clearly a risk of mission creep
Stephen Booth
Possible EU plans for "peer reviewing" of member states' pensions systems have been unveiled.
The proposal is for a system of surveillance and "peer review", with member states checking each other to ensure their pension systems are "sustainable."
The plan is contained in a commission’s green paper on pensions, details of which were announced earlier this week.
The issue is particularly sensitive as, currently, the EU has little power in the realm of pensions which is widely regarded as a closely guarded member state competence.
The move also comes in the wake of proposals whereby national budgets may be vetted at EU level before national governments make them public.
The pensions proposal was criticised as a "worrying step" by Open Europe, a UK-based eurosceptic think tank.
Its spokesman Stephen Booth said, "I think the fact that the commission is talking about “peer reviewing” member states’ pensions systems is definitely significant.
"The green paper also talks about creating “A common platform for monitoring all aspects of pension policy and regulation in an integrated manner.”
He added, "This clearly represents another step towards the goal of an “EU economic government” with the commission seeking to centralise and co-ordinate economic policy even further.
"This might be sensible for eurozone, but certainly not the UK which is not in the eurozone.
"Pension reform is certainly necessary but why does the EU need to get involved? It is no different to the plan to peer review national budgets, which was rejected by the UK, and there is clearly a risk of mission creep.
"Pension reform is certainly needed in the UK and across Europe but this should not be used as an excuse by the EU to extend its powers and further the creation of an ‘economic government’.
"This would be a very worrying step towards greater interference in individual countries’ welfare and social security systems.”
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