The observation that Europe needs more investments and that European savings can be part of the solution was made by Minister of National Economy and Finance Kyriakos Pierrakakis.
In a speech at the 7th Occupational Insurance Conference, he said that occupational insurance funds are a strong institution with a long-term perspective. “For workers, they are an important supplement to the pension system. They enhance pension adequacy and allow more citizens to plan for their future with greater security,” he noted, adding that occupational insurance builds bridges between citizens’ financial security and the development needs of economy. It links long-term savings with growth and transforms planning for the future into a driving force for progress for society as a whole.
The development of the second pillar of social security, he also noted, is a strategic choice for the country. It strengthens the overall resilience of the social security system, reinforces the culture of saving, and contributes to the creation of a broader investment ecosystem.
Sustainability of insurance systems
In detail, the minister’s speech is as follows:
“The topic you have chosen for this year’s event is extremely timely, as it is linked to one of the European Union’s most important strategic priorities: the Savings and Investment Union. This is an undertaking that goes beyond the boundaries of economic policy. It concerns how Europe will strengthen its resilience and finance the major priorities of the coming decades.
Europe is called upon to invest more in defense and security, energy independence, digital infrastructure, artificial intelligence, and the technologies that will determine its competitiveness in the coming decades. At the same time, demographic trends make the discussion about the long-term adequacy of pensions and the sustainability of social security systems even more important.
Faced with these challenges, a crucial question arises: Who will finance Europe’s future? The answer is simple: Europe itself. The Savings and Investment Union is the way for the European Union to invest in its future and multiply its strength.
There are more than 10 trillion euros in private savings in Europe. This is a massive financial reserve that can support growth, innovation, and competitiveness across our continent.
However, at a time when the investment gap remains significant and financing needs are growing, a significant portion of these funds is seeking investment opportunities outside Europe and is helping to finance the growth of other economies.
The great opportunity for the Savings and Investment Union is to bring European savings and European needs closer together. To enable European citizens’ savings to finance the next generation of European businesses, critical infrastructure, innovation, technological progress, and ultimately European autonomy itself.
The challenge is great, but so is the opportunity. If we succeed in channeling more European savings toward the benefit of the European economy, we will have laid the foundation for a Europe that is more competitive, more resilient, and stronger in the decades to come.
Pension Funds at the Heart of the Solution
As part of this major European effort, Pension Funds are at the heart of the solution. This is because the Savings and Investment Union is not just about the markets. It is about creating strong European institutional investors with a long-term perspective. Occupational Pension Funds are precisely such an institution.
For workers, they are an important complement to the pension system. They enhance pension adequacy and allow more citizens to plan for their future with greater security.
Occupational insurance builds bridges between citizens’ financial security and the economy’s growth needs. It links long-term savings to growth and transforms planning for the future into a driving force for progress for society as a whole.
For citizens, this discussion boils down to a simple question: how can more and better-paying jobs be created? The answer lies in investment. The more productive investments made in an economy, the more productivity, wages, and opportunities for everyone increase.
This is precisely where the importance of the second pillar of social security comes into play. Occupational pension funds promote long-term savings and pool capital that can support economic growth. That is why their development is a European priority and not merely a national choice.
The success of this effort depends on trust. Trust is the foundation of every savings decision. It is the reason why a worker chooses to set aside part of their income for the future and the reason why citizens trust an institution to manage the fruits of a lifetime’s labor. That is why transparency, accountability, good governance, and effective oversight are essential prerequisites for the institution’s development.
Trust is built day by day. It is built through consistency, reliability, and results. And it is particularly important that in recent years, Greece has taken substantial steps in this direction.
The development of the second pillar of social security is a strategic choice for our country. It strengthens the overall resilience of the social security system, reinforces the culture of saving, and contributes to the creation of a broader investment ecosystem.
Productive Investments
Greece has every reason to actively participate in the major European effort to mobilize savings and channel them into productive investments. Because what is at stake is Europe’s development model, the ability of our businesses to grow, our economies to become more productive, and our citizens to enjoy a higher standard of living.
The major challenges of our time require major responses. Europe needs more investment. It needs greater economic resilience. European savings can be part of the answer. The success of this effort will ultimately be measured in a simple way: by whether we manage to turn citizens’ confidence in the future into prosperity for future generations.
I would like to congratulate the Hellenic Association of Occupational Insurance Funds for its long-standing contribution to the development of this institution and for organizing this conference. Through your work, you foster a culture of saving and contribute to an effort that is directly linked to the future of the Greek and European economies. This is an effort with a strong social, economic, and national impact. Thank you very much, and I wish you every success in the proceedings of the conference.”
