Monday, November 29, 2010
France, Ireland and Hungary Seize Pensions As Part of Move By Governments to Use Long-Term Assets to Fill "Short-Term Deficits"
France is apparently following the example of Ireland and Hungary and seizing pension funds.
According to eFinancialNews, the French parliament passed a law last week allowing 36 billion Euros to be seized from the French reserve pension fund to be used to pay off the debts of France’s welfare system.
As eFinancialNews notes:
The move reflects a willingness by governments to use long-term assets to fill short-term deficits, including Ireland’s announcement last week that it would use the country’s €24bn National Pensions Reserve Fund “to support the exchequer’s funding programme” and Hungary’s bid to claw $15bn of private pension funds back to the state system.
There have been unsubstantiated rumors for years that the American government will also seize 401(k) money.