With the completion of the Financial Services Action Plan, it is time on the wholesale side to "bed down what has been initiated, implement it, assess it and move forward," Commissioner McCreevy told EurActiv.
In two recent speeches Commissioner McCreevy also made it clear that he envisages emphasis now to be on integration of retail services. He has signalled out the retail banking market to be a priority. There are to be measures to allow the use of debit cards cross-borders, which, unlike credit card use, is currently constrained by legal and technical barriers.
There is also to be a rethink on consumer credit, currently subject to a 2002 proposal for a Directive which has stalled in the attempt to marry the free flow of services with adequate consumer protection.
Mortgages is another area in which further Commission action can be expected. On 13 Dec 2004, the Forum Group on Mortgage Credit, set up by the Commission in March 2003, published a report on cross-border mortgages. It suggested legislative and non-legislative measures by which the EU market could be integrated, giving more consumer choice and wider lender opportunities. Measures suggested are stipulating which national law applies, a unified regulatory system and encouraging use of the internet to market mortgages.
The European Mortgage Federation (EMF) and the European Association of Cooperative Banks (EACB) have both welcomed the Forum's report. In a statement, EACB has said its members "consider it urgent, for a pan-European market of mortgage credit to become a reality, to make it possible for customers to compare the various national offers available. To this end, it will first be necessary to harmonise the different definitions of the APR (annual percentage rate) on a narrow basis."
A consultative Green Paper on retail financial services markets is expected in May 2005.
Read the full interview with Commissioner McCreevy.
