EC says Polish pension fund investment laws obstruct free flow of capital

The European Commission (EC) claims that current Polish law allowing pension funds(OFE) to invest only 5% of their capital abroad obstructs the free flow of capital. European Union (EU) does not agree with Poland's view that OFE are a part of public finance and cannot be EU regulated. According to Polish negotiators such a benchmark for pension funds allows capital to remain in Poland. 'Because this matter is not regulated with European directive, we have the right to put some limits on it,' said Krzysztof Ners from the Finance Ministry. Pension system co-author Marek Gora stressed however that free flow of capital would allow Polish pensions to benefit from finance market efficiency not only in Poland. (Puls Biznesu, p.11) M.M.