As regards the argument invoked by the Commission in its decision to initiate the procedure that the possible passing on of the advantage granted to insurers should be able to benefit not only insured persons/employees, but also employers (who contribute to the payment of part of the premiums), France and the CTIP consider that the employer’s contribution to financing contractual supplementary social protection schemes constitutes remuneration for employees and an advantag ...[+++]e for the latter.

The Commission is nevertheless of the opinion that, even if the financing of a cover scheme in favour of employees by the employer is in fact an advantage for the employees, it is undeniable that any reduction in premiums will also constitute a reduction in the charges payable by the employer and therefore an advantage for him.

This levy includes an administration levy and a risk levy which incorporates two elements: a risk-based element that takes into account the scheme’s under-funding risk and the employer insolvency risk (80 % of the levy) and a scheme-based element on the basis of the size of the scheme’s liabilities (20 % of the levy).

38. Stresses the need for the Member States to preserve adequate levels of funding for social security and pensions systems and the need to find alternative and robust tax bases in the face of the increased competition brought about by globalisation; stresses the importance of reducing reliance on labour taxation in order to increase the competitiveness of Member State economies and provide more work incentives; recognises the complexity involved in shifting to a more capital based taxation, given the smaller capital tax base and greater mobility of capital; suggests that shifting to new methods of taxation and/or other alternatives c ...[+++]ould be considered to improve the financial sustainability of social spending, which would reduce the tax burden on people with lower incomes; maintains that employers' social security contributions represent an investment because they result in increased productivity, this being one of the reasons why countries with high social spending are also the most competitive;

38. Stresses the need for the Member States to preserve adequate levels of funding for social security and pensions systems, the need to find alternative and robust tax bases in the face of the increased competition brought about by globalisation; stresses the importance of reducing reliance on labour taxation in order to increase the competitiveness of Member States" economies and provide more work incentives; recognises the complexity involved in shifting to a more capital based taxation, given the smaller capital tax base and greater mobility of capital; suggests that shifting to new ways of taxation and/or other alternatives could be considered to im ...[+++]prove the financial sustainability of social spending, which would reduce the tax burden on people with lower incomes; maintains that the employers' social security contributions represent an investment because they result in increased productivity, this being one of the reasons why countries with high social spending are also the most competitive;

They are to do with recognising that pay-as-you-go schemes can no longer be exclusively relied upon to keep people's pension expectations fulfilled and also exhort Member States to sort out their tax and spending policies.