The European Union's controversial pension proposals could have cost the UK 46% of its GDP, research by Lane Clark & Peacock (LCP) has found.

According to LCP's analysis of the European Insurance and Occupational Pensions Authority(EIOPA) Quantitative Impact Study (QIS) into the financial implications of imposing insurance-style regulation on private sector pension schemes, the UK would have the most impacted the most by the pension proposals.

Other countries, such as Germany and Ireland would have both only been hit by just 2% and Belgium by 1%.

LCP partner Jonathan Camfield said that the proposals would have been "gargantuan" for the UK and that they would have "crippled" the UK economy.

Camfield said: "Whilst we are pleased that the European Commission has put these proposals on hold we are concerned that the ongoing work by various European bodies and the statements being made from Brussels, suggest that the issue remains firmly on the agenda, and is not going to go away quickly.

"Even if Europe does not require UK employers to recognise these additional costs at the moment, our research demonstrates the challenges faced by the UK private sector relative to its European counterparts.

"This begs the question whether the UK private sector can manage to pay off all its pension promises, whilst remaining competitive with other European countries over the coming decades."

First published 27.08.2013

monique_simpson@wilmington.co.uk