Just like the popular floor filler from Chris Rea*, it looks like the individual countries would like to "Go their own way" when it comes to capital calculations for long term business, so reports Reuters.
Clearly the elephant in this particular room of different products in different countries is "why wait 10 years to table this", on the basis that retirement products in Europe haven't changed seismically in the genesis period of Solvency II? A cynic might say that the conflicting market/product representatives each thought they would emerge victorious after the lobbying rounds (hence didn't ask for carve-outs at outset), only to find an economic crisis and the threat of an EU-wide 'lost decade' was the backdrop to negotiations.
To see a political move from the French Finance minister to attempt to outflank EIOPA's LTG assessment is pretty poor form, but is at least in keeping with DG Faull's letter to Sr. Bernadino, which did everything but tell him the desired answer to the LTG question, and I suppose the weight of public opinion if nothing else would suggest that discouraging long term investment right now (even if the initial maths say that the capital price is right) is politically naive and a shade obtuse economically.
This parting of the ways may certainly be the case for the balance sheet question, but oddly seems to also be rearing around early adoption of Pillar 2, where the Dutch are looking pretty keen while at the same time the Irish have stated that they will wait for the crowd.
*PS Shame on anyone who, with their Solvency II hats on, thought I might be talking about the "Road to Hell"!
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