London School of Economics (11.08.2015) What effect has the financial crisis had on pension systems in EU countries? Aaron G. Grech notes that prior to the crisis there was a significant divergence in pensions across the EU, with some states having relatively generous systems in comparison to others. He writes that following the crisis, southern European states have had to substantially cut back on pensions, while other states in northern Europe have remained relatively unscathed. He argues that although it should still be possible for these systems to keep pensioners out of poverty, European policymakers will need to ensure a properly functioning labour market that provides opportunities for young Europeans.