WRITTEN QUESTION E-3063/02

by Theresa Villiers (PPE-DE) to the Commission

(29 October 2002)

Subject: Transaction costs

1. Has the Commission conducted any research into or analysis of bank charges in the euro zone over the past 12 months? If so, can the Commission indicate what it has done?

2. Does the Commission believe that there have been any improvements since the Commission study released at a press conference on 24 September 2001 at which Mr Bolkestein admitted that the situation was disappointing and that there was still too much unauthorised double charging?

3. Does the Commission have any information on the impact of Regulation (EC) No 2560/2001(1) on cross-border payments in euro?

4. Has the Regulation brought down the cost of cross-border payments in euro within the euro zone?

5. What is the average price of a cross-border payment in euro in the euro zone?

6. Has the cost of domestic payments in euro changed since the introduction of the Regulation?

7. Can the Commission provide any figures relating to individual countries within the euro zone (e.g. the cost of transfers between Germany and France or between Ireland and Italy)?

8. Does the Commission have any information on the cost of bank transfers from euro-denominated bank accounts outside the euro zone, to euro bank accounts inside the euro zone? If so, can it give a breakdown of figures for each country?

(1) OJ L 344, 28.12.2001, p. 13.

Answer given by Mr Bolkestein on behalf of the Commission

(28 November 2002)

The Commission has closely monitored the application of European Parliament and Council Directive of 27 January 1997 on cross-border credit transfers(1). It commissioned several studies on price trends and the national transposal measures. This information is available at the following address: http://europa.eu.int/comm/internal_market/fr/finances/payment/directives/index.htm

In addition, as required by Article 12 of the Directive, la Commission is in the process of adopting a report on its application in the Member States, which will subsequently be transmitted to Parliament and the Council. It emerges from the report that, although the situation regarding double charging, has improved significantly, the banking sector does not fully comply with the provisions of the Directive aimed at eliminating all costs for the beneficiary (except on the express instructions of the principal). This situation should change considerably as of 1 July 2003 with the entry into force of European Parliament and Council Regulation (EC) No 2560/2001 of 19 December 2001 on cross-border payments

in euro(2), subsequently extended to the Swedish krona. As of that date, cross-border transfers in euros and in the Swedish krona will be charged at the same rate as domestic transfers between the beneficiary and the issuer.

The Commission has not carried out any studies on bank charges in the euro zone during the last twelve months. It does not, therefore, have exhaustive and up-to-date statistics on cross-border payments in euros. However, after the entry into force on 1 July 2002 of the provisions of Regulation (EEC) No 2560/2001 relating to payment cards, it obtained information on the payment charges before and after 1 July 2002. The data show that there was a substantial reduction in charges for cross-border transactions in the euro zone as they were aligned with charges on strictly domestic transactions. The reorganisation of charges resulted in increases for certain services, but only in a very small number of cases.

On the basis of the information available to it, the Commission takes the view(3) that the situation has improved and that, barring a few exceptions, the provisions of the Regulation have been applied in an entirely satisfactory manner.

As provided for in the Regulation, the Commission will submit in July 2004 a report on the application of the Regulation and, in particular, its impact on payment charges within the Member States. To that end, several statistical surveys will be launched.

(1) OJ L 43, 14.2.1997.

(2) OJ L 344, 28.12.2001.

(3) As at September 2002.