WRITTEN QUESTION No. 877/97 by Amedeo AMADEO to the Commission. Green Paper on financial services and consumers
Date: 1997-03-12
Institutions: AMADEO, European Parliament
Subjects: competition, consumer protection, financial institution, financial market, goods and services, single market, supplier













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91997E0877

WRITTEN QUESTION No. 877/97 by Amedeo AMADEO to the Commission. Green Paper on financial services and consumers  


Official Journal C 367 , 04/12/1997 P. 0050 





WRITTEN QUESTION E-0877/97 by Amedeo Amadeo (NI) to the Commission (12 March 1997)Subject: Green Paper on financial services and consumersThe Green Paper 'Financial Services: Meeting Consumers' Expectations (COM(96) 209 final) offers an important opportunity for considering in depth and analysing existing problems and obstacles, in order to devise better safeguards for users of financial services and ensure better distribution of trans-border services. Representatives of consumer organizations and the banking, insurance and financial sectors have contributed to the discussion and consideration of these issues. It has been noted that the Commission text is full of ideas and information, but also questions and contradictions. The general approach set out in the text seems to be to consider consumer protection of secondary importance to the completion of the internal market. Could the Commission change its attitude and attach equal importance to both objectives? Without adequate benefits for the consumer in terms of greater convenience and better-quality services, the single market may turn out to benefit producers of goods and services only, without reference to ordinary people's needs.Answer given by Mr Monti on behalf of the Commission (29 April 1997)The Commission in no way regards consumer protection as being of secondary importance to the completion of the internal market. Both objectives are equally important and their implementation must run in parallel. The Commission fully shares the Honourable Member's view that, without benefits for the consumer, the single market may be perceived as benefiting producers of goods and services only.The Commission is convinced that this is not the case in that consumers already benefit in two respects from the single market in financial services. Firstly, the significantly keener competition between between suppliers of financial services (for example, cross-frontier branching in the banking sector has risen by 58% since 1993) is stimulating innovation and is being reflected in prices. The emergence of direct banking can be attributed to the need to reduce costs in order to remain competitive. Secondly, the harmonization to date of certain provisions on consumer protection is consistent with the dual objective of increasing consumer confidence in the single market and removing the obstacles facing suppliers as a result of disparities between national laws, thereby helping to diversify supply in a given market.The Commission is quite aware that this does not mean that the situation viewed from the angle of the consumer is altogether satisfactory. Obstacles and problems have been identified during the consultations undertaken by the Commission as the follow-up to its Green Paper. The Commission will now be endeavouring to remedy the situation by all appropriate means, including legislation. It will shortly be adopting a communication on the matter.