EC not to interfere in Hungary pension system change

European Union member states are free to decide on which pension system they adopt, so the European Commission will not interfere with Hungary's planned changes, Employment Commissioner Laszló Andor told the Hungarian business daily Napi Gazdaság on Friday.

The pension systems of member countries must meet basic provisions, they must not discriminate the citizens of other member states or pension funds and cannot hinder the free movement of workforce of capital, the paper quoted Laszló Andor as saying.

"If these rules are hurt the EC could interfere but this does not seem to be justified at the moment," Andor said.

Asked about the lack of public consensus in Hungary on the pension system changes, Andor said it would be unwise to make hasty decisions when the country was not in an emergency situation. Pension systems are built on people's trust, so seeking a consensus is important, he added.

Losing trust could have unfavourable effects, it could push up the cost of external financing and the interest rate level, it could destabilise the national currency and thwart investments, Andor said.