Poland loses case on pension funds' foreign investment limit at EU court.

By bne IntelliNews December 22, 2011
The European Court of Justice has ruled that Poland has infringed on EU laws by limiting foreign investments by Polish open pension funds (to 5% of their assets). It notes that the Polish limit "is significantly lower than the limit of 30% considered appropriate by the EU legislature." The Polish government pointed to the exchange risks linked to sharp fluctuations in the Polish zloty exchange rate and stressed the need to adopt a particularly prudent approach during the initial period of operation of the new Polish social security system. The European Commission initiated the lawsuit in April of 2009. Commenting on the verdict, FinMin Jacek Rostowski said that he is not surprised by this decision, which is another justification for the Polish government's decision to lower the contribution sent to pension funds to 2.3% of gross wages from 7.3% last year.

Related Articles

EC refers Poland to court for delay on renewable energy rules.

The European Commission is referring Poland (and Cyprus) to the Court of Justice of the European Union for failing to fully transpose EU's Renewable Energy Directive, according to the ... more

ZEW Economic Sentiment Indicator for Poland surges to 42.9pts in February.

The ZEW-Erste Group Bank Economic Sentiment Indicator for Poland (economic expectations) surged by 22.3pts m/m to 42.9pts in February, according to a report by the Center for European Economic ... more

FinMin: Poland to inject EUR 5.5bn of FX reserves to ECB upon euro-zone entry.

When Poland joins the euro-zone, it will have to transfer EUR 5.47bn of its foreign-currency reserves to the European Central Bank, according to a statement by the ministry of finance. The ... more

Notice: Undefined index: subject_id in /var/www/html/application/controllers/IndexController.php on line 335