B4-0244, 0245, 0260, 0309, 0310 and 0311/99

Resolution on bank charges following the introduction of the euro

The European Parliament,

- having regard to its resolution of 13 January 1998 on the euro and the consumer ((OJ C 34, 2.2.1998, p. 38.)),

- having regard to its resolution of 10 March 1998 on the practical aspects of the introduction of the euro ((OJ C 104, 6.4.1998, p. 69.)),

- having regard to Commission Recommendation 98/286/EC of 23 April 1998 on banking charges for conversion to the euro ((OJ L 130, 1.5.1998, p. 22.)),

- having regard to the public hearing of 16 February 1999 in its Subcommittee on Monetary Affairs,

A. whereas one of the major arguments used to convince EU citizens of the benefits of the single currency has been the fact that the euro will reduce costs for travellers and enterprises doing cross-border trade,

B. whereas the elimination of exchange-rate risks between the currencies of Member States participating in the euro zone should result in a reduction of the costs involved in conversion transactions between those currencies,

C. whereas, despite this, charges for exchanging euro area currencies have remained high, as have bank charges for cross-border transfers,

D. whereas there is justified concern among economic players, especially consumers and small and medium-sized undertakings, which are more vulnerable in short-term commercial transactions, particularly in direct relations with European clients,

E. whereas Parliament has repeatedly insisted that compulsory conversions between national currency and the euro must be free and that charging for any transactions between participating currencies of the euro zone must be completely transparent,

F. whereas the Commission has established a deadline of 31 March 1999, by which time the banking and financial sector must ensure full transparency of bank charges,

G. whereas, in the light of the Commission Recommendation, it was not felt necessary for the banking and financial sector to draw up a code of conduct,

H. whereas action has been taken by DG IV of the Commission to discover whether there has been collusion between banks over euro transaction charges,

I. whereas the Directive on cross-border credit transfers has not, as promised, been implemented early by the industry,

1. Is concerned about the persistent level of bank charges for conversion transactions between currencies participating in the euro zone, including charges for cross-border payments;

2. Urges the Commission to continuously monitor, assess and publish bank fees charged by the banking and financial sector, in the light of the provisions of its Recommendation 98/286/EC, for transactions covered by that Recommendation;

3. Stresses that these data must take account of changes in the structure of bank charges and must allow direct comparisons between conversion costs before and after the introduction of the euro so that transparency can be maximised;

4. Calls on the banking and financial sector to draw up a code of conduct so as to ensure that the provisions of the Commission Recommendation are followed;

5. Agrees with the deadline set by the Commission for the banking and financial sector to ensure full transparency of bank charges, and the reduction of these charges, both for conversion transactions and for cross-border credit transfers;

6. Believes that, failing results by this deadline, binding legislation has to be considered to ensure that consumers obtain the full benefits of European monetary union without any further delay;

7. Is concerned that the action by DG IV has targeted only a small number of banks and urges the Commission to widen the scope of this action;

8. Calls for the Directive on cross-border credit transfers to be implemented by the industry as soon as possible and calls on the Commission to be rigorous in monitoring the transposition and implementation of this Directive as soon as it officially enters into force;

9. Instructs its President to forward this resolution to the Commission, the Council and the governments of the Member States.