Insurers welcome Council conclusions: Heads of state emphasise the importance of the insurance sector
The European Council has taken a position on the EU Commission's Savings and Investment Union strategy. Insurers welcome the call to ensure fair competitive conditions and to expand proven pension products in a targeted manner in order to strengthen both the capital market and private investment.
The Europa building in Brussels is the headquarters of the European Council and the Council of the EU.
Following the presentation of the European Commission's strategy for the Savings and Investment Union (SIU), which the GDV believes fell short, the EU heads of state and government took a stand on the issue at the European Council summit. In doing so, they set the direction for the further development of the SIU - and explicitly emphasise the role of the insurance sector. In their conclusions, they call on the Commission, among other things, to improve the conditions for European insurers in global competition and to build on tried and tested pension products. It is now up to the Commission to consistently implement this mandate in its initiatives.
"German insurers finance the economy and infrastructure, allow businesses to operate worldwide and enable citizens to secure their future. The fact that the European Council now recognises this central role of insurers is a strong signal. The natural next step is to create European pension solutions and facilitate access to tried-and-tested products," says Moritz Schumann, Deputy CEO of the German Insurance Association (GDV).
Modernise pension savings and mobilise capital
With the Savings and Investment Union, the EU wants to strengthen the European capital market and make it more attractive for citizens to invest their money. In order for this to succeed, major reforms are needed. One pillar is the reorganisation of European pension solutions. The implementation of a European pension product remains a key challenge. So far, the Pan-European Pension Product (PEPP) has been hampered by strict requirements and complex specifications. "It is both right and important to build on what has been tried and tested in order to meet the different needs of consumers. This should also be the guiding principle for the review of the PEPP," says Schumann.
Tax incentives also play a decisive role. To date, there has been no European solution to make pension products more attractive through tax advantages. As a standardised tax policy is difficult to agree at EU level, the GDV recommends incorporating existing national tax incentives into the EU strategy in a targeted manner. This could help to establish private pension products throughout Europe and increase the participation of citizens.
