The European Parliament's Economic and Monetary Affairs Committee on 3 June 2026 debated the revised Pan-European Personal Pension Product (PEP 2), exposing divisions over its impact on state pensions and the inclusion of horizontal principles in EU programme rules. On PEP 2, Commission representative Tilman Lueder outlined a life-cycle product sold online without advice, with workplace applicability including auto-enrolment and tax advantages. Rapporteur Stéphanie Yon-Courtin (Renew, France) proposed renaming it 'Euro Pension' to boost appeal and stressed simplicity, tax incentives, and alignment with existing rules. Janusz Lewandowski (EPP, Poland) welcomed the revision but urged flexibility on fees and advice, and integration with occupational pensions. Francisco Assis (S&D, Portugal) warned against eroding state pension systems and questioned the removal of mandatory sub-accounts.
Catarina Martins (The Left, Portugal) strongly opposed the proposal, arguing it privatises social security and citing poor returns of Portuguese private funds. Lueder countered that PEP 2 supplements declining state replacement rates and that sub-accounts remain optional. On horizontal rules for EU programmes, Lewandowski proposed deleting principles such as 'do no significant harm' and climate tracking from the performance regulation, calling them duplicative. Jonás Fernández (S&D, Spain) read a statement opposing removal, calling it a political choice that undermines EU priorities. Voting on amendments is scheduled for 23 June.
The debate highlights a cleavage between those who see PEP 2 as a necessary supplement to state pensions and those who fear it undermines social security. For EU citizens, the product could offer higher returns but also investment risk. Pension providers gain a new market but face compliance costs. Employers may benefit from auto-enrolment but bear administrative burdens. Member states risk reduced control over pension systems if the product gains scale. The horizontal rules dispute reflects a tension between regulatory simplification and maintaining environmental commitments.