Commission proposals on supplementary pensions remain controversial.

On 17 February, the Economic and Financial Affairs Council (ECOFIN) approved the Council's recommendation on economic policy in the euro area for 2026. For the first time, this year’s recommendation incorporates the priorities of the Savings and Investment Union, initiated at EU level in 2025. The focus is thus on both forward-looking public investment and greater mobilisation of private savings for investment and competitiveness. However, proposals on private and occupational supplementary pensions, which are intended to contribute significantly to the mobilisation of private savings, were not included in the economic policy recommendations. In this context, the ministers emphasised national competences.

Recommendation on economic policy in the euro area

The recommendation sets out the key economic policy priorities and recommendations for action for the euro area Member States. The aim is to coordinate national economic policies and thus strengthen stability, growth and the functioning of the Economic and Monetary Union. For the first time, the guidelines of the Savings and Investment Union, initiated at EU level in 2025, are systematically included in the recommendations, marking a new strategic focus.

Supplementary pension package – a key element of the savings and investment union.

The pension package aims to make occupational pensions and supplementary pensions more attractive and accessible to EU citizens, while also contributing to the financing of the economy by mobilising more private capital for productive investment. Specifically, the package includes a recommendation on the equal tax treatment of the Pan-European Personal Pension Product (PEEP) and a recommendation on the creation of EU-wide pension tracking systems and national pension dashboards. It also recommends automatic enrolment in supplementary pension schemes with an opt-out option.

National pension dashboards are intended to give policymakers a better overview of the adequacy and coverage gaps of their pension systems. In a second step, they are to be consolidated at European level. EU-wide pension tracking systems aim to provide beneficiaries with a clear overview of their pension entitlements and potential gaps, thereby raising awareness of the need for additional pension provision. These measures, together with automatic enrolment in supplementary pension schemes – for which the European Commission is also proposing the PEPP – should make a significant contribution to mobilising the capital needed for investment in the EU.

Support – while preserving national competences

During the meeting, ministers expressed their general support for the Commission's proposals to improve the framework for supplementary private and occupational pensions in the EU. The potential of the package to both ensure adequate retirement provision for EU citizens and to mobilise capital for investment through long-term private savings was highlighted on several occasions. At the same time, ministers stressed that Member States' competences must be respected, particularly in the area of social and labour law.

What happens next:

The Cypriot Presidency has announced that it will work on a common basis for the supplementary pensions package, taking into account the diversity of national pension systems. At its meeting on 19 and 20 March, the European Council is to be presented with the Council's recommendation on economic policy in the euro area for 2026. ECOFIN can then formally adopt the recommendation.