AEIP welcomes the Single Market Strategy’s aim to create new momentum for a modernised single market
The European Association of Paritarian Institutions (AEIP) replied to the European Commission’s call for evidence on the Single Market Strategy for 2025. AEIP welcomes the aim of the Single Market Strategy to create new momentum for a modernised single market for goods and services, taking into consideration the needs of businesses, workers and citizens.
AEIP supports the (i) removal of barriers to the free movement of goods and services, (ii) the need to tackle administrative burden and rationalise reporting requirements and (iii) calls for the European Commission to further consider the unique structure and characteristics of paritarian institutions in view of the horizontal governance of the single market.
In the new Strategy, we call for the European Commission to accelerate the establishment of the internal market through the parallel enhancement of paritarian institutions of social protection. Belonging to the welfare state and offering social protection, paritarian institutions exhibit distinct qualities compared to other participants in the financial market. Paritarian institutions, operate as ‘not-for-profit’ entities, fulfilling a crucial social role in ensuring adequate social protection. They do not engage in product sales but rather serve members and beneficiaries with retirement, healthcare, unemployment benefits, or other benefits as defined by collective agreements. Mandatory affiliation based on employment relationships, regulated and protected by national social, and labour laws, further distinguishes these institutions from pure financial market entities.
Furthermore, in our response, we support the creation of a well-functioning internal market. Paritarian institutions are important institutional investors, making substantial contributions to long-term investment and sustainable growth. A new Strategy should remain ambitious in developing and integrating the EU capital markets. A well-functioning internal market can provide better access to diverse sources of capital across the EU by creating more opportunities to invest. This can reduce costs, improve portfolio performance and risk management, leading to higher social protection benefits for paritarian funds’ members by facilitating safer savings, achieving higher returns while reducing costs. Similarly, in our input we fully embrace the idea of integrating single market to increase the European competitiveness, but we point out that this shall not come to the expense of social protection for all.
AEIP remains committed to engaging in constructive dialogue with the European Commission and other stakeholders to ensure that future regulatory developments in the Single Market consider the unique characteristics of paritarian institutions across Europe.
To read our full reply please see here.