The Role of Soft Law in the Convergence of Pension Policies of EU Member States

The failure of the European Union to harmonize the pension policies of its Member States and tighten the policy of budget deficit and public debt control have intensified the efforts to find a new way to regulate this area. Instead of harmonizing the Member States’ pension policies, the European Union has decided to take action aimed at their convergence. Given that the great heterogeneity of the Member States’ pension systems and policies made the implementation of the hard law infeasible, soft law has been implemented for regulating this area. The aim of this paper is to determine the effect of soft law regulation on the convergence of pension policies of the European Union Member States and assess its impact on the achievement of common defined objectives: sustainability and adequacy of pension systems, as well as modernization of pension systems.