These plans are now the only ones available on the Italian market. Under these arrangements, acquired rights are easier to transfer from one job to another. Their development is consequently also in line with the requirements of a modern and more flexible economy. However, regulators and supervisors must be vigilant in ensuring that future pensioners are adequately informed about the related risks and on the way in which their assets will be managed. Even if they pose challenges, they also sow the seeds of a solution.
Pensions are by definition a long term investment.
I believe that these facts gives us the economic basis to make pensions both affordable and secure - the twin goals I mentioned. Given a proper prudential framework we can harness the long term higher returns of equity without sacrificing security. In its contribution to the Lisbon European Council, the Commission itself has highlighted the need for an integrated EU framework in the field of pension funds which, by increasing more liquidity on capital markets, would ease future pressure on social security systems, reduce the cost of capital and increase venture capital. But before I explain in more detail the EU response, let me describe briefly how Member States are tackling the problem of financing pensions. Public pension schemes remain fully in the remit of Member States.