EFAMA reiterates its strong support for the PEPP which has a strategically important role to help and encourage European citizens to save for retirement and to channel more savings towards long-term investments in the EU. The PEPP has the potential to become a significant part of the single market and to strengthen the Capital Markets Union by increasing the share of household saving being invested in capital market instruments. It is good news for European savers that they will have the possibility to choose Basic PEPPs based on life-cycle strategies which are consistent with the ultimate goal of protecting the long-term real value of the contributed capital.
Looking forward, the PEPP Regulation will only produce all of its expected positive effects if the accompanying Level-2 measures ensures that the PEPP is attractive to both savers and providers. The tax treatment applicable to the PEPP will also be a crucial element for its promotion across Member States. In this respect, EFAMA supports the European Commission’s recommendation that Member States grant the same tax relief to the PEPP as the one granted to national pension products to ensure that the PEPP gets off to a flying start.
EFAMA has been supportive of the European Commission’s proposal for a PEPP from day one. This is why we commend the Rapporteur in the European Parliament, Sophie in’t Veld, her colleagues Shadow Rapporteurs, as well as the Estonian, Bulgarian, Austrian and Romanian Presidencies and their colleagues from Member States for their efforts throughout the negotiating process.
Press release
© EFAMA - European Fund and Asset Management Association
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