The PEPP Contribution to the Capital Markets Union (CMU)

The EU has several ‘pension problems, for example ageing, poor portability and the lack of consumer protection. Furthermore, the EU internal market for pensions is not sufficiently developed. This not only prevents, for example, a cost-efficient pension build-up of an employee working abroad, but the differences among national rule also restrict a local pension participant in choosing a pension fund established abroad.

All these problems have been recently pointed out in the new action plan to achieve the Capital Markets Union. The European Commission in fact deems the introduction and adoption of the PEPP as integral part of a truly single market for capital across the EU.

The PEPP can help break down these barriers as well as contribute to a high level of consumer protection, for example via limiting the costs and providing detailed information requirements. This article contains a description on the PEPP and its consumer protection elements, potential uses and its Level 2 measures.