The Confederation of British Industry (CBI) has given a hostile reception to the European framework for pensions.

The IORP Directive is the European framework for institutions for occupational retirement provision (IORPs), or pension funds

The objective of the IORP Directive is to provide a prudential framework for pension funds based on minimum harmonisation and mutual recognition.

Neil Carberry, CBI director for employment, said: "The European Commission's White Paper is right to focus on promoting sustainable and affordable pension schemes, including the promotion of longer working lives and greater pension saving.

"Nonetheless, our concerns with the IORP (pensions) Directive remain. We are unconvinced Commissioner Barnier has moved on from his proposal of applying Solvency II-style regulations to pensions, which would be hugely damaging to the economy and job creation.

"The IORP Directive must place a greater emphasis on growth to better complement the overall direction set out by today's White Paper, putting pension affordability at the heart of the debate."