Increasing long term investments in the real European economy is the core policy of the CMU initiative, and this means it is vital that the CMU works for pension funds. Many pension funds currently encounter barriers in the form of a mismatch between their own long-term investment horizons and the short-term focus of much of the regulatory framework. Furthermore, political and regulatory risks are a key source of uncertainty for investors and can undermine pension funds’ willingness to invest.
PensionsEurope’s position and response to the consultation explore these and other issues. Such as why and for whom pension funds invest. Under the right conditions, pension fund capital can contribute to the future growth of the EU real economy. However, this will only happen if EU policies take into account the characteristics of pension funds.