Poland Seizes Half of Private Pensions
September 10, 2013 2 Comments
While the world was glued to the developments in the Mediterranean in the past week, Poland took a page straight out of Rahm Emanuel’s playbook and in order to not let a crisis go to waste, announced quietly that it would transfer to the state – i.e., confiscate – the bulk of assets owned by the country’s private pension funds (many of them owned by such foreign firms as PIMCO parent Allianz, AXA, Generali, ING and Aviva), without offering any compensation. In effect, the state just nationalized roughly half of the private sector pension fund assets, although it had a more politically correct name for it: pension overhaul.
Venezula seized pensions, but Poland is a member of the European Union. It’s one thing for a small country with a shaky political history to do this. You expect EU countries to have better finances and more respect for private property.