EUROPE - The portability directive will not get approved by the council of ministers following criticism from the Netherlands (amends details on parliamentary vote).
A parliamentary vote on the European Commission's proposed pensions portability directive will take place as planned in mid-June but no matter what the outcome the directive will not be approved by the council of ministers.
The Dutch government is afraid that the present proposal will allow deferred members to claim higher additional pensions without having made contributions and wants to prevent active members from having to foot the bill.
It has ‘fundamental objections' and sees ‘genuine risks' in the draft directive, the Dutch Social Affairs minister Piet Hein Donner told his European colleagues today.
According to the minister, the present proposal no longer serves its initial goal of enhancing labour mobility within the EU.
Discussions on the draft directive will continue under the Portuguese presidency, which commences on July 1.
Senior figures in German pensions have also recently reaffirmed their hostility to the draft directive, hoping to scrap the portability proposal altogether in its current form.