The European Parliament's Economic and Monetary Affairs Committee debated the revised Pan-European Personal Pension Product (PEP 2) on 3 June 2026, with MEPs staking out incompatible positions on its scope, tax treatment, and impact on state pensions. Rapporteur Stéphanie Yon-Courtin (Renew, France) proposed renaming the product 'Euro Pension' to boost consumer appeal and stressed simplicity, tax incentives, and alignment with existing rules. Commission representative Tilman Lueder (DG FISMA) outlined three key features: a life-cycle product sold online without advice, workplace applicability including auto-enrolment, and tax advantages.
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 justification for removing 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 horizontal principles (e.g., 'do no significant harm', climate tracking) from the performance regulation, arguing they duplicate sectoral rules. 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.
EU citizens could gain a new, portable pension option with potential tax advantages, but critics warn of risks to state pension adequacy. Pension providers face new compliance costs for a life-cycle product sold online without advice. Employers may benefit from simplified auto-enrolment options. Member states worry about fiscal pressure if tax incentives reduce revenues or if PEP 2 crowds out occupational schemes. Regional authorities could see shifts in pension governance if the product gains cross-border traction.