EN Official Journal of the European Union CE 88/173

(2004/C 88 E/0181)

WRITTEN QUESTION E-0270/04

by Brice Hortefeux (PPE-DE) to the Commission

(5 February 2004)

Subject: Follow-up to regulation on cross-border payments

Regulation (EC) No 2560/2001 (1) on cross-border payments in euro, which was adopted by the European Parliament and entered into force on 31 December 2001, has helped to reduce the cost of cross-border payments within the internal market. It has also encouraged the banking sector to modernise its payment infrastructure EU-wide. This has been an important step towards establishing a single area for non-cash payments in the internal market, which did not exist despite the introduction of the euro.

However, a recent survey in France (quoted at the hearing held by the Committee on Economic and Monetary Affairs on 20 January 2004) has shown that the 25 banks questioned apply 180 different rates. It is therefore extremely difficult for consumers to find their way around this administrative jungle. Indeed more than 24 % of those interviewed said they were given incorrect information. In addition, some bank charges have been illegally increased or even introduced to offset the entry into force of the regulation.

Given the above, what measures does the Commission intend to take to ensure that the planned advantages of this legislation are not erased by the counter-measures taken by banking establishments?

Has the Commission considered what legislative provisions could be introduced to ensure that banks at long last supply clear information that can be easily understood by consumers?

Answer given by Mr Bolkestein on behalf of the Commission

(11 March 2004)

In accordance with Regulation (EC) No 2560/2001, which has been applicable to card payments and withdrawals from ATMs since 1 July 2002 and to credit transfers since 1 July 2003, the charges made for a cross-border payment in euros should be the same as for a domestic payment.

On the basis of the information currently in its possession, the Commission considers that, with the exception of Spain, where the Commission has asked the Spanish authorities to take the measures necessary for its proper application, the regulation is generally being properly applied. It is not aware of the survey in France referred to by the Honourable Member and would be interested in receiving any information he could provide in this connection.

In the event of failure to comply with the Regulation, the competent national authorities must impose effective, proportionate and dissuasive penalties.

Under the Regulation, the Commission will also present to the Council and Parliament by the end of June 2004 at the latest a report on its application that will focus, among other things, on the evolving situation regarding the dramatic rates being charged. It will then be in a position to provide the Honourable Member with a fuller answer. Nonetheless, it should be noted that the price increases of many banking services have nothing to do with the Regulation, which deals only with charges for electronic transfers and transactions. The Commission is of the opinion that banks are free to determine the price of their services and that it is up to the customer to seek the best deal.

This is also why the Commission places great emphasis on transparency of information for payment service users. In order to guarantee this transparency, it proposed in its communication to the Council and Parliament of December 2003 (2) regarding a new legal framework for payments in the internal market transparency rules for payment service providers which would be harmonized at European level.

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

(2) COM(2003) 718 final.