Tags: CS Monitor European Nations Seizing Private Pensions

CS Monitor: European Nations Seizing Private Pensions

Wednesday, 05 Jan 2011 09:22 AM

Hungary, Poland and Bulgaria are seizing control of private pension funds, while France and Ireland are dipping into state savings funds to finance themselves, the Christian Science Monitor Reports.

Hungary has told its citizens to remit individual retirement accounts to the state, gaining control of $14 billion in the process.

Bulgaria and Poland have taken similar measures, demanding partial control over private pension funds.

Ireland created a state pension fund for public workers about 10 years ago and recently used some of the money to bail out banks.

France is using money from public pension funds to service liabilities earlier than planned.

"It looks like although the governments are able to enforce general participation in pension schemes, they do not seem to be the best guardians of the money accumulated there," the newspaper reports.

"People’s retirement savings are a convenient source of revenue for governments that don’t want to reduce spending or make privatizations."

European economies have battled debt and financial crises during the past couple of years.

While prospects for recovery are improving in the United States, financial concerns still plague Europe.

China, however, appears ready to help via debt purchases in Spain as well as through other measures.

"China's support of the EU's financial-stabilization measures and its help to certain countries in coping with the sovereign debt crisis are all conducive to promoting full economic recovery and steady growth," says Chinese Vice Premier Li Keqiang Li said in an opinion piece published in Germany daily Sueddeutsche Zeitung on Wednesday.

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Hungary, Poland and Bulgaria are seizing control of private pension funds, while France and Ireland are dipping into state savings funds to finance themselves, the Christian Science Monitor Reports. Hungary has told its citizens to remit individual retirement accounts to...
CS Monitor European Nations Seizing Private Pensions
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2011-22-05
 

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