The MEP charged with reporting on the Monti pensions green paper to the EU Parliament's Social Affairs committee will accept most of its recommendations and suggest directives on portability and to secure a level playing field amongst pension providers.

However Dutch liberal MEP, Johanna Boogerd Quaak, who has completed her written report, believes that it will have a difficult time at the committee hearing scheduled for this month.

I support most of the proposals of the Commission, but the debate in the committee will be difficult, because many countries do not have a capital based system and the green paper is all about this," she told IPE.

"I advocate a move in favour of capital based systems but want to do it carefully. One of the problems is that in countries without such a system people will have to pay twice at the start for pay as you go and for the capital fund system."

She favours EU legislation to achieve these ends. "I am in favour of a directive for portability and in favour of a directive for a level playing field for pensions insurance companies. But that second directive will be difficult to achieve because some of the social partners and some of the funds may be afraid of a level playing field."

Boogerd Quack also suggested that the setting up of pension funds, and a move from PAYG will help facilitate a move from taxation on labour to other types of taxation such as energy taxes.

Following its deliberations, the committee's recommendations pass for consideration to the Legal Affairs committee before the full parliamentary debate, which Boogerd Quaak hopes will be in March this year.

The European Federation for Retirement Provision (EFRP) was completing its response to the Green paper on supplementary pensions following extensive consultation with the national associations at time of going to press and will publish details this month.

Some national associations such as the French and the British have presented their own additional responses while others such as the Austrian association will rely on the EFRP submission to put the case for them. John Lappin"