WRITTEN QUESTION E-0935/97 by Reino Paasilinna (PSE) to the Commission (13 March 1997)

Subject: Position of staff in the banking and financial services sector and what the sector needs in order to cope with the introduction of the single currency

The banking and financial services sector will play a central part in the process of preparing for the single currency. The scheduled timetable depends in practice on whether the banking and financial services sector can cope with the significant challenges in terms of work, training and information which the process will involve.

Within the banking and financial services sector, people are asking the practical question whether the staff employed in the sector will be able to cope with the additional volume of work and training. All assessments predict that, of all sectors of the economy, this preparation and completion process will affect banking and financial staff most severely. On the one hand the preparations create additional work for staff, but on the other hand once the single currency is in place and income from currency exchange transactions drys up, there will be pressure to rationalize, resulting in ever increasing levels of unemployment in the banking and financial services sector.

In the light of the above:

1. What action has the Commission taken or does it propose to take to clarify the effect on staff in the banking and financial services sector of the process of preparing for and introducing the single currency?

2. How has the Commission contributed to the launching of a social dialogue in which management and workforce in this sector can study, together with the Commission, the impact of the preparation and introduction of the single currency on the position and employment of staff in the sector?

Answer given by Mr de Silguy on behalf of the Commission (15 May 1997)

The banking and financial services sectors have a key role to play in the introduction of the euro and have been active in their preparations. The euro is one of a number of changes to the sector which are increasing competition and opening up new business opportunities. However, it is not the dominant one. Banks also need to face major technological innovations such as 24 hour phone services, which prove to be a credible alternative to classical counter offices. Indeed, the rationalisation process in the banking sector began ten to fifteen years ago, with the generalisation of computers in local branches, at a time when economic and monetary union was not yet on the agenda. It is therefore difficult to derive any specific effect in terms of competition or employment from the introduction of the euro.

The Commission contributes to the preparation of the financial sector by providing legal certainty, guidance concerning best practices and other additional information that might be necessary, such as through the two proposals for regulations based on Articles 109L(4) and 235 EC Treaty on the legal status of the euro which have been submitted to the Council. In addition, the Commission, through various consultative groups, facilitates co-ordination to deal with all the technical questions related to the introduction of the euro, for instance market conventions and practices. The banking and financial sectors will also take an active part in the round table organised on 15 May 1997 about practical aspects such as conversion charges during the transitional period.

The social dialogue between management and workforce in the banking sector remains largely a national one, if only because of the remaining divergences between labour laws, which are particularly obvious in this branch. For instance, it would be difficult to have a debate at the European level on the French 1937 Decree on bank opening hours, although it has an impact on employment.

Nevertheless, the Commission is fully aware of the global European employment challenge for this sector. A permanent dialogue will be maintained by the Commission with the banking and financial services sectors, in order to facilitate their adaptation to the implementation of the euro.