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EU: Sweden Discriminates Against Foreign Pension Funds

Published tisdag 9 januari 2007 kl 15.50

The European Commission is taking Sweden to the European Court of Justice for allegedly discriminating against foreign pension funds to restrict competition in the sector.

According to the EU executive, premiums paid by Swedish employers into pension funds in another European Union member state were treated less favourably than premiums paid into a Swedish-based fund. It also said that payments to foreign pension funds are taxed while contributions to domestic schemes are exempt.

Swedish Finance Minister Anders Borg counters that the Swedish system does play by the rules.

The Court of Justice, the bloc’s top court, has the power to force Sweden to change its laws and impose fines.

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