The House of Representatives sent a letter on Wednesday to President Mario Draghi of the European Central Bank (ECB) stating that ECB policy has negative consequences for Dutch pensions.

The letter includes a motion from CDA MP Pieter Omzigt, who adopted the Chamber on Tuesday.

In the letter, Parliament drew the attention of Draghi to the fact that the ECB’s plans to compensate banks for negative interest rates if they deposit their money with the ECB are unfavorable to Dutch pension funds and insurers.

According to the motion by Omzigt, there should be no difference in compensation for people who save for a pension through a bank account and people who do so through a pension fund. With the letter, the House of Representatives ignores the principle that central banks must be free of political pressure.

“Dutch pension funds hit disproportionately hard”

According to Omzigt, the compensation only benefits Southern European countries, because they traditionally save for their pension through the bank. In the Netherlands, most people save through pension funds. “The negative interest rates of the ECB are disproportionately affecting the Dutch pension funds,” said the CDA member.

With the compensation scheme, the ECB wants to stimulate the European economy. The central bank is expected to announce the measures on Thursday.

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