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EC not to interfere in Hungary pension system change, says commissioner

Although the European Commission may form an opinion on pension changes Hungary is undertaking, the pension system the government decides on is a matter of national competence, Employment Commissioner László Andor said in an interview with Napi Gazdaság.

The pension systems of member states must meet basic provisions, they must not discriminate against citizens of other member states or pension funds and they may not hinder the free movement of labor or capital, Andor said. “If these rules are broken, the EC could interfere. But this does not seem to be justified at the moment,” he added.

Hungary's government recently announced plans to move mandatory private pension fund members, together with their assets, back to the state pension pillar, transforming the country's three-pillar pension system into a two pillar one. (MTI – Econews)