WRITTEN QUESTION P-3959/00

by Vitaliano Gemelli (PPE-DE) to the Commission

(8 December 2000)

Subject: Banking interests: is the Commission supporting the ABI (Italian Banking Association) or the general public?

With reference to the problems arising from the Italian Constitutional Court's judgment 425/2000, which establishes the unlawfulness of recalculating interest on financing, can the Commission say:

- whether it is true that the ABI, in order to avoid refunding amounts wrongfully collected from clients, has approached the European Commission and, more specifically the Commissioner for Competition, or other Commissioners;

- whether it is true that the ABI has obtained assurances, from quarters not clearly specified by the Commission, that the Commission itself may take steps to safeguard banks to the detriment of the general public, who are victims of an unjust system;

- whether it does not consider that it should take general measures aimed at preventing the European and Italian banking systems from continuing to have a relationship with its customers which in many cases is totally one-sided, and re-establish the balance of power in favour of the client.

Answer given by Mr Monti on behalf of the Commission

(24 January 2001)

The questions put by the Honourable Member concern the problems of compound interest raised by the Italian Constitutional Court's judgment 425/00.

They can be answered as follows:

- Outside the routine contacts between the Commission and the ABI (Italian Banking Association), no discussion has taken place that has dealt specifically with compound interest. However, two complaints have been lodged with the Commission by, on the one hand, ABI and AIBE (Italian External Banking Association) and, on the other, the European Banking Federation regarding Italian Law 108/96 on usury. They have been registered under No 2000/5209. By letter of 22 December 2000, the Internal Market Directorate-General called on the Italian to present its observations on this entire matter.

- The Commission formally denies having given anyone whatsoever assurances along the lines indicated by the Honourable Member. On the contrary, its policy is to strike a balance between the interests at stake since the single market can be achieved only if there is complete confidence between consumers providers of services. The Financial Services Action Plan, which is being implemented, has announced and pursued in unambiguous manner this balanced approach.

- The Commission is aware of the problems of compound interest, which will be examined generally at European level as part of the review of Council Directive 87/102/EEC of 22 December 1986 on the approximation of the laws, regulations and administrative provisions concerning consumer credit(1). However, the rules of Council Directive 93/13/EEC on unfair terms in consumer contracts(2), the application of which is the responsibility of the national authorities, seem suited to tackling, where necessary, the problems posed by Italian banking contracts, notably as regards interest.

The Commission takes the view that the existing legal framework at European level thus already allows the national authorities to remedy any situations of imbalance between financial operators and consumers.

It will be certain to act to ensure compliance with the rules on competition laid down in Articles 81 and 81 (former Articles 85 and 86) of the EC Treaty, notably as regards the information recently made available to its Competition Directorate-General by a consumer association.

(1) OJ L 42, 12.2.1987.

(2) OJ L 95, 21.4.1993.