The open method of co-ordination: Some remarks regarding old-age security within an enlarged European Union

shows important channels by which the design, the scope and the structure of national old-age
security systems can be influenced.

Figure 1: Channels of possible influences on national old-age security systems at EU level

Source: Author on basis of Schmahl (2002: 102).

The figure above illustrates the activities to implement the four basic freedoms, namely free
movement of goods, free movement of workers, freedom to provide services, and free movement
of capital.¹⁷ Since 1957 these freedoms and instruments to ensure them - namely regulations, di-
rectives and recommendations - have been fixed in the Treaty of Rome.18 During the last years the
competition and antitrust rules, which are implemented in the Treaty as well, got an ever growing
influence on the national social security systems.¹⁹ In this context further important factors are the
rulings of the European Court of Justice (ECJ), known as one of the driving forces of integra-
tion.²⁰ At last the indirect as well as direct impacts of the European Monetary Union (EMU)
should not be neglected. The implementation of the Maastricht convergence criteria on public

For the EU activities to implement the four basic freedoms and its effects on the national social policies see
Schmahl (1997: 22 ff.) as well as the other comments in Schmahl / Rische (1997).

18

Cf. Schulte (2001) with references. As an example, there are to name the Council Regulation
(71/1408/EEC) on the Application of social security schemes to employed persons and their families mov-
ing within the Community as well as the Council Regulation (72/574/EEC) fixing the procedure for imple-
menting (71/1408/EEC). These co-ordination rules are to help avoid disadvantages in cross-border activi-
ties. Cf. Ruland (1991); Polster (1994) and Andel (2001). Another example for indirect effects on pension
policies may result from the directive of equal treatment of men and women - e.g. the Council Directive
(79/7/EEC) on the Progressive implementation of the principle of equal treatment for men and women in
matters of social security as well as the Council Directive (86/378/EEC) on the Implementation of the prin-
ciple of equal treatment for men and women in occupational social security schemes, which is now
amended by the Council Directive (96/97/EC). These directives have remarkable effects in old-age security
schemes regarding retirement ages. For this aspect see Schmahl (1993: 8) and Sieveking (1997: 206 f.).

19

For the influence of the competition and antitrust rules on the national security systems see
Haverkate / Huster (1999: 285 ff.) and Eichenhofer (2001: 187 ff.).

20

Cf. Schmahl (1993: 7 ff.); Eichenhofer (1996); Sieveking (1997) and Leibfried / Pierson (1998: 60 ff.) as
well as Leibfried / Pierson (1999).

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