European Policy Analysis Volume 2, Number 1, Spring 2016 | Page 39

European Policy Analysis - Volume 2, Number 1 - Spring 2016

Second Tier, Second Thoughts—Why it Turns out to
be so Difficult for EIOPA to Create a Single Market for
Private Pensions
Frieder WolfA & Georg WenzelburgerB
In the context of the completion of the common financial market and
historically low real interest rates, the recently founded European Insurance
and Occupational Pensions Authority (EIOPA) has been assigned the task
to develop a regulatory “2nd regime” for private pensions. Issuing a detailed
discussion paper, EIOPA invited feedback from stakeholders and received
more than 1,300 comments. Based on an analysis of these positions, our paper
examines arguments justifying or criticizing the creation of such a single
market and on the—sometimes surprising—emergent advocacy coalitions.
Unlocking potential economies of scale is attractive to certain large providers;
yet it is hindered by member states’ widely differing tax rules and raises various
distributional questions. Furthermore, we assess EIOPA’s own emerging
position vis-à-vis both the Commission and national regulators, especially its
strategic shift toward consumer protection. 2nd regime regulation as one of
EIOPA’s first and foremost tasks proves formative regarding its institutional
role perception and the legitimacy of its activities.
Keywords: private pensions, EIOPA, common financial market, 2ndregime,
European social policy

1. Introduction

as advertised, and their administrative
costs have been identified by the German
government (Bundesministerium für
Arbeit und Soziales 2014) as a major
target in the most recent National Social
Report (which is part of the EU’s open
method of co-ordination). In this context,
the newly founded European Insurance
and Occupational Pensions Authority
(EIOPA) has been assigned the task
to develop a regulatory “2nd tier,” also

L

ow real interest rates, apparently
here to stay for quite a while in the
context of the euro crisis, challenge
European Union (EU) member states’
pension policies regarding both their
central aims: avoiding poverty among
the elderly and maintaining their living
standards. Occupational and personal
pension plans are unlikely to perform

A
B

University of Heidelberg/Germany
University of Kaiserslautern/Germany
doi: 10.18278/epa.2.1.5
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