The financial and tax regime of the unified pension in the European Union

Abstract

Europe is currently in an ageing situation as the population over 65 years of age exceeds 100 million people. Pension reforms address the reduction of expenditure and old-age dependency. There are various pension models in Europe, ranging from "Bismarckian" to "multi-pillar". Budgetary measures, driven by economic competition and EU requirements, seek to limit pension spending. Opposition to reforms varies across countries, influenced by social and trade union factors.

Intergenerational solidarity is crucial, as pension cuts can affect both old and young people. The European Union seeks to unify pensions for those who have worked in several Member States and to carry out the procedure for claiming the unified pension considering retirement ages, contribution periods and the financial and taxation regime of each country. However, the imposition of reforms is met with resistance from some European states. The tax issue, poverty rates in old age, the need to balance economic sustainability and social justice are central challenges in the question of the European pension system.