ECB – What it retorts to the upcoming reform of the Greek social security system

“Regarding your specific question about the forthcoming reform of the Greek social security system, I would like to point out that the ECB does not take a position on how the individual Member States organize their pension systems.” This is stated by the head of the European Central Bank Christine Lagarde, answering a relevant question by Greek MEP Dimitris Papadimoulis.

In response, Ms Lagarde emphasized that the ECB monitors cyclical and structural developments in the euro area and European Union banking sectors as a whole, as well as in other financial sectors, and assesses the potential impact of systemic risks on stability and the resilience of the financial system.

In addition, the EEM Regulation gives the ECB macro-prudential powers to act with regard to euro area banks.

However, it emphasizes that the risks to the financial system arising from certain pension, insurance or other investment products mentioned in your letter do not fall within this remit and that actions to mitigate such risks go beyond the powers conferred on the ECB.

In addition, ECB staff work closely with the European Pensions and Occupational Insurance Authority – whose main objective is to promote financial stability in the insurance and pension markets – and provide support to the European Systemic Risk Board (ESRB) for the prevention of and systemic risk reduction.

The ESRB’s mission covers the financial system more broadly, including banks, insurance companies, asset management companies, the shadow banking sector, financial market infrastructure and other financial institutions and markets.

As part of the enhanced supervisory process for Greece, the ECB focuses its activities on issues within its remit, such as financial policies and macroeconomically critical issues, including key fiscal targets and sustainability, as well as financial .

Pension reforms are analyzed in more detail by the European Commission in its aging report, and the financial implications of these reforms are covered by its debt monitoring report.