A European Union directive aimed at creating a cross-border pension market became law today following final approval from finance ministers meeting in Brussels. The directive, which has been debated for 10 years, centralizes European pension policy and provides a framework that might eventually allow companies to set up Europewide pension schemes.
Frits Bolkestein, EU internal markets commissioner, said in statement that the passage of the bill into European law is a major achievement that will help companies solve the pension "time bomb” by easing restrictions and adding efficiency in pension provision.
However, individual governments still have to tackle their own tax laws before a true cross-border pensions market can be established, said Dale Fleet, a pensions manager with Swiss Life.