WRITTEN QUESTION E-2601/02

by Ilda Figueiredo (GUE/NGL) to the Commission

(18 September 2002)

Subject: Regulation on crossborder payments in euros

1 July 2002 saw the entry into force of the regulation on crossborder payments, which states that customers should pay no more to withdraw euros from cash machines or make card payments in euros in other EU Member States than they pay for the same services in the Member State where they live. This principle is to be extended to bank transfers by 1 July 2003.

A Commission press release of 27 June 2002 (IP/02/941) declared: New EU rules mean cheaper cash withdrawals and bank card payments abroad, claiming that domestic withdrawals and payments are free of charge while transactions abroad attract an average charge of approximately EUR 4. Complaints have recently been voiced in the press, in Portugal and elsewhere, not only over the implementation of the directive but also on the grounds that some banks have chosen to increase their charges for domestic withdrawals or payments. The result is that customers end up paying more. In addition, there has been a tendency to introduce or increase commissions and other bank charges, in an attempt to replace old sources of revenue, notably those deriving from exchanging operations, by new ones. One of the benefits of the single currency, i.e. lower transaction costs, thus seems to be failing to materialise.

Given the above:

- Can the Commission supply information on the evolution over the last decade of commissions and other bank charges for each member country of the eurozone?

- Can the Commission confirm that commissions and other bank charges have increased in the eurozone?

- What is the Commission's assessment of the implementation of the regulation on crossborder payments and commissions and charges on domestic and crossborder payments?

Answer given by Mr Bolkestein on behalf of the Commission

(31 October 2002)

1 July 2002 saw the entry into force of the payment cards provisions of European Parliament and Council Regulation (EC) No 2560/2001 of 19 December 2001 on cross-border payments in euro(1). On the basis of the information at its disposal, the Commission considers that, with a few exceptions, implementation of this Regulation has been entirely satisfactory(2).

The Commission does not have any data on the evolution of bank charges over the last ten years for the 12 Member States in the euro zone. Nevertheless, it has had the opportunity to examine the charges for some banks' payment services before and after 1 July 2002. This reveals that there has been a substantial drop in charges for cross-border payments within the euro zone as a result of their being aligned on charges for strictly domestic transactions. In some cases, the scale of charges has been reorganised with the result that the charge for some of the services offered by cash dispensing machines has increased. However, such vases are very limited in number.

In July 2004 the Commission, as required by the Regulation, will report on its application, in particular on its effects on charges for payments within the Member States. Several statistical surveys will be launched to that end.

(1) OJ L 344, 28.12.2001.

(2) Situation in September 2002.