Pension fund regulations present problem to EU entry chapter closure

The European Commission (EC) has suggested that Polish regulations governing the extent to which Open Pensions Funds (OFEs) may allocate their assets abroad is preventing closure of the free capital flow chapter of European Union (EU) negotiations. Although no EU directive explicitly regulating the matter exists, the EU wants OFEs to be allowed to invest at least 20% of their financial assets overseas. While the Polish minister responsible for European integration, Danuta Hubner, has expressed a willingness to meet EU regulations, there is no commitment to abandoning the current 5% limit on OFEs' investments abroad. As chief EU entry negotiator Jan Truszczynski puts it, membership of OFEs is compulsory, and as public institutions they are not obliged to obey common market rules. (Rzeczpospolita, p. B2) M.K.