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Belgium now joins as the fifth country in the protest group including Germany, Ireland, the Netherlands and the UK. Those governments formalised their opposition to any possible inclusion of the controversial measures in IORP II in 2012. The Belgian announcement was made by Alexander De Croo, deputy prime minister and minister for pensions, speaking at a meeting organised by the Belgian Association of Pension Institutions (ABIP).
De Croo said it would be "unwise" for Michel Barnier, the commissioner for internal markets, to come up with a proposal for a new Directive before the summer, as prudential supervision for pension funds was "too important a subject to be dealt with hastily". If allowed to happen, this would "do damage" rather than provide a worthwhile solution.
Tom Sallis, senior policy adviser at the UK Confederation of British Industry's Brussels office, warned of the dangers resulting from a "Solvency-II inspired regime" for pension funds. For the UK, he said, the initial impact could be a squeeze on shareholder funds, a cut in jobs and wages and a drop in procurement funding. A "plausible" direct cost for UK business could be €440 billion, he said.
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