Blatant Pension Expropriation
In general Poland has been moving towards greater economic freedom and stronger property rights. This trend made them the only European nation which did not suffer a recession during the European debt crisis.
But they’re taking a big step backwards now. In 1999, following Chile’s example they privatized part of their pension system. But half of the system was left under government control and ownership. The Polish government is now simply stripping assets, namely Polish sovereign bonds, out of the private sector of the plan and transferring it into the public section of the pension system. Big downgrade to property rights.
“Poland’s controversial scheme stripping privately-run pension funds of their holdings of government bonds has been signed by the country’s president but also forwarded to the constitutional tribunal, which is expected to take up the issue of the legality of the government’s move by this spring.”
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