Just nine of the 25 countries in the European Union will have introduced the pensions directive into national law before its September 23 deadline, leaving many facing legal action by the European Commission. The poor level of co-operation has prompted European members of parliament to call for an enquiry into why some countries are dragging their heels.

The UK and Sweden are among those that will not meet the deadline. The EC has declined to name the others. A spokesman for EU internal market commissioner, Charlie McCreevy, who is handling the pensions portfolio, warned that after September 23, formal infringement procedures would be lodged with non-compliant countries. "This could go to the European Court of Justice, although the court would only be able to remind countries that they should ratify the directive," he said.