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In June 2017, the European Commission (EC) forwarded to the European Parliament (EP) a Proposal for a Regulation of the European Parliament and of the Council on a pan-European individual pension product (PEPP).

The PEPP is not an instrument of social protection, but a mechanism of capital accumulation.

Therefore, the EC waives the objective of public pensions being sufficient, since it recognizes that "complementary pensions could play a key role in retirement income, particularly when public pensions may be inadequate".

To promote the subscription of the PEPP, the EC requires that tax deductions be established in the Member States for those who acquire them, but low-wage workers can not allocate any amount to pension plans and therefore do not deduct.

It is the recipients of high wages and rents of capital who can make large contributions and deduct.

The main objective of the PEPP is not to guarantee decent pensions for workers at the age of retirement, but as the Proposal repeats again and again, "Get more capital and channel it towards long-term European investments in the real economy".

However, it should be the public sector, through a much larger European budget than the current one, responsible for deciding and implementing the necessary investments for the European economy and society, for example, for the transition to a decarbonised energy system.

Therefore, to guarantee a decent and publicly sustainable pension system, the motion will request the following agreements:

1. The Lorca City Council will address the European Commission to withdraw the PEPP proposal, as well as all parliamentary groups to reject this proposed regulation when it comes to debate.

2. The Lorca City Council will address the Spanish Government to propose and support the withdrawal of this proposal in the European Council.

3. The Lorca City Council will address the Spanish Government and the Parliamentary Groups of the European Commission to ask it to study the necessary measures so that the public pension systems guarantee decent and sufficient pensions.

4. The Lorca City Council will address the Spanish Government and the Parliamentary Groups of the European Commission to promote the elimination of tax deductions for contributions to private pension funds.

Source: IU-verdes Lorca