Brussels has brought Poland before the European Justice Tribunal for imposing limitations on foreign investments by Open Pension Funds (OFE).

The European Commission is of the opinion that this violates common market principles. This also limits profitability for the Funds’ clients, the EC claims. Polish regulations draw a 5% limit on foreign investments by Open Pension Funds, simultaneously establishing higher fees for the transactions which automatically makes them far less attractive than in the case of domestic investments.

Brussels dismisses arguments of the government in Warsaw that the Funds are public entities and, therefore, cannot be subject to special market rigors. The EC claims that though the OFE are part of the public pension system, they conduct economic activity and remain as competitors on the market.