WRITTEN QUESTION E-2582/98

by Ernesto Caccavale (UPE) to the Commission

(1 September 1998)

Subject: Possibility of taking action to rehabilitate the recipients of notices of protest in Italy

In Italy the SNARP (national association set up to combat usury and rehabilitate the recipients of notices of protest) has repeatedly drawn the attention of the general public to the fact that under current Italian legislation governing credit transactions, which is unique in Europe, more than 12 million businessmen, craftsmen, professional people and ordinary citizens, who have been the subject of protests in respect of bills of exchange and cheques, are in effect excluded from bank transactions and hence from dealing in euros, in that at least until the entry into force of the new European currency, transactions in euros may only be carried out by persons or entities holding a current account in a bank.

In view of this situation in the European Union, Italy has in effect lost approximately 25 % of its economically active population, since out of an electorate of 42 million people, 12 million citizens have been registered as being the subject of protests in the last ten years. These may include potential entrepreneurs, who thus suffer discrimination and whose personal freedom to do business is restricted.

In view of the openness and scale of the European market, those who have been involved in protest procedures should not suffer discrimination preventing them from engaging in any kind of banking activity, since this is contrary to the fundamental principles of constitutional law and means that they are indirectly forced to operate using illegal or undercover methods, thereby helping, despite themselves, to encourage organised crime.

Can the Commission say:

- what effective steps it intends to take to prevent an increase in the black market in credit and usury caused by the 12 million recipients of notices of protest in Italy;

- what role the European Central Bank may play in recommending the drafting of specific Community legislation designed to ensure that the Banca d'Italia and the Italian banking association adopt rules allowing individuals and firms to regain the right to operate and engage in production, which is inseparably linked to the use of the banking system for all kinds of transactions and the increasingly widespread use of electronic money;

- what role the Commission itself may play in finding an immediate solution designed to restore individual prerogatives and the productivity of 12 million Italians, who are currently automatically excluded from operating legally within the Italian and European banking systems?

Joint answer

to Written Questions E-2455/98 and E-2582/98 given by Mr Monti on behalf of the Commission

(2 October 1998)

The Commission considers that the growing black market in credit, the practice of usury in Member States (in particular Italy), the wave of protests in Italy and the preventive measures to be taken in this area fall within the direct jurisdiction of the Member States.

In view of the wide variety at national level of the causes and characteristics of this phenomenon, any legislative measures would produce more focused and effective results if they were adopted at national level. The provision of better education and information for members of the public and businesses on the financial implications of the situation described above is often regarded as being effective in preventing usury from spreading further.

However, the Commission is monitoring the matter, primarily from the standpoint of the single market, and will continue to do so. Lastly, it takes the view that the European Central Bank, which is concerned essentially with monetary policy, payment systems and, to a lesser degree, credit institutions, does not have any competence in the matter.