In February, the European Commission adopted a report which suggests extending the provisions of Regulation 2560/2001 to direct debit payments.
Direct debit payments are executed by a bank automatically, following instructions from the customer. A typical example is the payment of fixed expenses such as rent or mortgage instalments. The customer sets an order and a beneficiary, and the bank pays accordingly every month.
Thus far these operations have been more expensive, and often impossible, when carried out through cross-border transactions. Now, legislative action from the Commission "could be expected in autumn 2008," according to a press release issued on 26 February. The new measures would then enter into force in the following weeks.
European banks have already agreed to harmonise direct debit payment procedures by November 2009.
The Commission is also requesting that balance of payments reporting obligations be gradually lifted. The obligations are applied to payments above 12,500 euros, which are still in place in some EU states. Brussels considers them to hamper the development of the Single Euro Payments Area (SEPA). They are currently used for the preparation and communication of monetary policy, although they are being gradually replaced by other statistics collected directly from enterprises.
This week also saw the first meeting of the Commission Expert Group on electronic invoicing. The objective of the group is to remove barriers to e-invoicing in Europe in order to create a single and more efficient European system. The experts are supposed to present a list of recommendations by the end of 2009.
