Unlike USA, pension liabilities cause little concern in Europe.(Cover Story)

Byline: Sylviane de Saint-Seine

"Old Europe" can be slow to reform, but that has advantages when it comes to companies' pension liabilities.

Many US companies, notably in the labor-intensive auto industry, are currently suffering from huge debt represented by pensions they owe their employees, past and present.

Two weeks ago, Delphi, Visteon, Cummins Engine Co. and Eaton Corp. joined Ford Motor Co. and General Motors on the list of auto companies that have seen, or may see, the rating of their debt lowered. This will translate into higher cost of borrowing as ...