Report from the Commission to the European Parliament, the Council, the European Central Bank and the Economic and Social Committee - Financial services action plan - Progress report
Date: 1999-11-24
Institutions: European Commission
Subjects: financial legislation, financial market, report, single market

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 24.11.1999
COM(1999)630 final

REPORT FROM THE COMMISSION
TO THE EUROPEAN PARLIAMENT, THE COUNCIL,
THE EUROPEAN CENTRAL BANK AND
THE ECONOMIC AND SOCIAL COMMITTEE

FINANCIAL SERVICES ACTION PLAN

PROGRESS REPORT

FINANCIAL SERVICES ACTION PLAN
Progress Report

Introduction

The European Council in Cologne and the European Parliament have supported both the content and
.  The  Action Plan details the  work  that  has to be
urgency of the Action Plan for Financial Services 
1
accomplished  to  reap  the  full  benefits  of  the  euro  and  to  ensure  the  continued  stability  and
competitiveness of EU financial markets. The Council invited the Commission to report on a regular
basis on the progress made and to present its first report before the end of 1999. This first report to
the Council and to the European Parliament tracks progress over the first six months (until 10 October)
since the adoption of the Action Plan. In view of the  short period sice the adoption of the Action Plan,
this report focuses in particular on the legislative progress that has been made. Annexed is a detailed
breakdown of the  separate  action  points.  The  second  progress  report  will  be  made  to  the  ECOFIN
Council  and  the  European  parliament  in  mid  2000:  it  will  contain  an  assessment  of  the  progress,
direction and results of the integration of the EU financial services sector and its contribution to growth
and employment in the Union.

Mechanisms & process

The mechanisms for  implementing  the  Action Plan  are critical  to  its  achievement. Over the past six
months,  and  in  line  with  the  suggestions  in  the  Action  Plan,  the  Commission  has  put  in  place  the
following structures.

 

 

 

The Financial  Services  Policy  Group  (FSPG),  comprising  personal  representatives  of  economic
and  finance  ministers,  has  resumed  its  tasks  as  a  forum  to  forge  consensus  between  national
ministries involved in financial services regulation. The FSPG has met twice since the adoption of
the action plan and has assisted the Commission in monitoring progress and preparing this report.

Initial informal discussions have taken place with representatives of the European Parliament with
a  view  to  finding  arrangements  to  discuss  major  policy  orientations  with  parliamentarians  at  an
early stage.

EU  representative  bodies  have  submitted  short  lists  of  experts  to  help  the  Commission  assess
certain  implications  of  technical  issues  raised  in  the  Action  Plan.  These  ‘Forum  Groups’,
composed  of  market  experts,  are  initially  considering  issues  related  to  market  manipulation;
updating  the  Investment  Services  Directive;  collateral;  consumer  information  requirements  for
retail  financial  services;  and  differences  in  national  legislation  that  hinder  the  cross-border
marketing of financial services. Further groups may be set up in the future.

Some progress has been made on implementing the Action Plan ….

The challenge set by the Action Plan for all of the Union’s institutions is considerable. It will demand
intense  and  sustained  activity  if  we  are  to  achieve  the  fierce  timescale  demanded  by  the  rapidly-
changing  financial  services  sectors.  The  first  months  have  seen  welcome  progress.  Already  the

1

FINANCIAL SERVICES - Implementing the Framework for financial markets: Action Plan.   Commission Communication
of 11.05.1999 COM(1999)232

2

                                               
Commission  has  issued  its  Communication  on  Pension  Funds  and  is  actively  preparing  a  draft
directive. It has also adopted a proposal for a directive to amend the Money Laundering Directive. With
regard  to  wholesale  markets  work  is  well  underway  within  the  Forum  of  European  Securities
Commissions (FESCO) and the Accounting Contact Committee to meet  the timeframe set out in the
Action Plan. The Commission also recently adopted its Communication on the implementation of  the
Risk Capital Action Plan. The Commission will increase its efforts in the field of accounting policy and
will present proposals to enhance regulatory co-operation between securities supervisors. Progress to
achieve  open  and  secure  retail  markets  is  also  satisfactory.  Discussions  in  the  Council  and  the
European  Parliament  on  the  distance  selling  proposal  for  financial  services  are  continuing.  The
preparation  of  a  legislative  proposal  for  insurance  intermediaries  is  on  track  as  is  the  work  on  a
number of Communications (consumer information,  insurance)  and a Green  Paper on E-Commerce
and  financial  services.  Work  on  prudential  rules  has  also  advanced.  The  proposal  for  a  E-Money
Directive is advancing through Council and European Parliament. The review of bank capital rules in
parallel with the G-10 Basel Committee on Banking Supervision, the insurance solvency requirements,
and  the  supervision  of  financial  conglomerates  are  on  schedule.  The  adoption  of  a  Commission
Recommendation  on  the  disclosure  of  financial  instruments  is  imminent.  Finally,  work  on  wider
conditions for a single market are continuing with a view to direct taxation. The Council deliberations
on the Commission proposal  on  a  minimum  taxation  of  savings  income are continuing at full  speed
and it is hoped that a political agreement can be reached before the end of the year. The same holds,
mutatis  mutandis,  for  the  work  of  the  Council  group  working  on  the  implementation  of  the  Code  of
Conduct on business  taxation.  After  first  fruitful  discussions,  inter  alia  in  the  Taxation  Policy  group,
work on the taxation of supplementary pensions and financial services in general will be continued as
a priority in 2000. A Commission proposal for supplementary pensions is already under preparation.

.. But there is a need for greater effort

The pressure to make  progress  demands  a  sustained  response  from  all  institutions.  The  European
Parliament and the Council have been invited in the Action Plan to make every effort to ensure rapid
agreement and implementation of the individual legislative measures. There must be a clear political
commitment by all institutions and actors to commit the necessary resources if we are to achieve the
ambitious deadlines that have been agreed. Indeed, lack of progress is noticeable in particular in the
following areas:

(cid:1) Political agreement on the proposal for a Take Over Bids Directive, which would make the final
adoption of this proposal possible, has still not been achieved in the Council. The main stumbling
block is to find a mutually acceptable solution for Spain and the United Kingdom over the status of
Gibraltar.

(cid:1) The  proposed  directive  on  the  Winding-up  and  Liquidation  of  Banks  was  presented  to  the
Council  and  European  Parliament  in  1985.  Here  too  the  lack  of  progress  is  the  absence  of  a
mutually  acceptable  solution  on  the  application  of  winding-up  and  liquidation  procedures  in
Gibraltar.

(cid:1) Despite successive  political  commitments  at  the most  senior level,  there  is  little  progress  on  the
European  Company  Statute.  This  has  had  implications  for  two  other  measures  in  the  field  of
company law (10th Company Law Directive and the 14th Company Law Directive).

(cid:1) The preparation of a Commission Recommendation on Prior Information for Consumers will
build on progress from industry in developing best practices. Delays within industry may soon be
resolved.  The  Commission  has  also  established  an  ‘Forum  Group’  with  industry  and  consumer
representatives to make progress.

3

(cid:1) The  Commission  Communications  on  Payments  in  the  Single  Market  and  Fraud  and
Counterfeiting in Payment Systems will be presented before the end of the year. The short delay
in their adoption is due to administrative reasons caused by the change in the Commission over the
summer.

Overall assessment:

The Financial Services Action Plan has injected new urgency and momentum into the task of building
a single financial market. There is now a shared understanding, at the highest political level, of what is
at stake – an unheralded opportunity to put modern and efficient financial markets at the service of EU
enterprise,  savers  and  investors.  The  six  months  since  the  endorsement  of  the  Action  Plan  by  the
Cologne European Council have witnessed modest but tangible progress in terms of:

 

 

the ground-work for the specific  initiatives in the action plan and mobilisation of input from market
practitioners and other important constituencies (consumers, users);

negotiation  and  adoption  of  legislation:  Council  and  Parliament  have  redoubled  their  efforts  to
secure  progress  on  number  of  proposals  some  of  which  have  been  the  subject  of  longstanding
deadlock. These efforts have not always come to fruition but with continued application, a number
of key initiatives could be agreed over the coming months such as the 13th Company Law Directive,
and  winding-up  and  liquidation  of  insurance  undertakings.  An  important  stumbling  block  to  the
political  progress  of  important  initiatives  has  therefore  been  the  absence  of  a  solution  for  two
Member States (Spain and the UK) over any direct or indirect reference to Gibraltar or its status in
proposed  legislation.  Continuation  of  this  impasse  carries  heavy  costs  for  the  development  of  a
single  financial  market.  It  is  to  be  hoped  that  the  two  Member  States  concerned  can  finalise
practical solutions to break the deadlock.

Over the next six months, the onus will remain on the Commission services  to  come  forward with a
series of important measures in accordance with the time-table foreseen in the Action Plan (pension
funds,  green  paper  on  Investment  Services  Directive,  modernisation  of  accounting  strategy,  e-
commerce Green Paper). In addition to  the preparation  of  specific initiatives  contained  in  the Action
Plan, the Union will need to refine its strategy in the light of accelerating structural change in financial
markets.  Discussions  in  FSPG  and  other  fora  in  the  coming  months  will  be  concentrated  on  the
following areas:

 

 

 

EU-wide trading of securities where particular efforts needs to be devoted  to allowing issuers the
possibility  of  raising  capital  on  an  EU  wide  basis.  This  requires  concerted  action  relating  to  the
demand  side 
(clear  and  common
understanding  on  authorised  activities,  products  and  intermediaries  and  effective  cooperation  in
market supervision);

information)  and  supply-side 

transparency, 

(market 

Emergence of internationally active conglomerates as the mainstay of EU financial  system which
raises questions for the EU prudential and supervisory framework.

Harnessing the commercial potential of E-commerce trading of financial services in manner which
offers effective safeguards to individual consumers.

4

ANNEX
PROGRESS ON THE ACTION PLAN FOR FINANCIAL SERVICES

This annex provides a first overview of progress on actions included in the Action Plan for Financial
Services (COM(1999)  232).  The  reporting  date  is  10  October  1999.  A  star  ((cid:1))  indicates  an  action
which  has  been  successfully  completed.    A  cross  ((cid:2))  indicates  actions  where  some  progress  has
been achieved in meeting the targets set in the Action Plan.  A minus sign (-) indicates those for which
progress is disappointing.

The tables summarise the current situation and provide the Commission’s assessment of the degree
to which Community institutions and Member States are achieving the objectives set out in the Action
Plan. Where appropriate a comment has been added in the final column, notably to indicate the next
steps to be taken.

5

STRATEGIC OBJECTIVE 1: A SINGLE EU WHOLESALE MARKET

Raising capital on an EU-wide basis:
Timeframe
For issue by
mid 2000
Adoption:
2002

Action
Upgrade the Directives on
Prospectuses  through  a
possible 
legislative
amendment

State of Play
Reflection  continues  within  the
Commission 
co-
in 
close 
operation  with 
a  FESCO
working-party

Update  the  Directive  on
Regular 
Reporting
(82/121/EEC)

Launch
consultation
by mid 2000
Proposal:
2001
Adoption:
2002

continuing 

in 
close 

the
in 
co-
FESE
with 
of  EU  Stock

Work 
Commission 
operation 
(Federation 
Exchanges)

Assessment

(cid:2)

(cid:2)

expected 

Follow-up
Preliminary  results  from
FESCO 
in
December 1999
Contact
Commission’s 
Committee  meeting  first
quarter of 2000
Commission’s 
Committee 
spring quarter of 2000
Consultation  of  FESCO
and industry spring 2000

Contact
meeting

(cid:2)

close 

Assessment

Timeframe
for
Draft 
issue 
by
end 1999

State of Play
Draft  Communication  under
preparation 
co-
in 
operation with FESCO

Action
a  Commission
Issue 
on
Communication 
distinction 
between
“sophisticated”  investors
and retail investors.

Establishing a common legal framework for integrated securities and derivatives markets:
Follow-up
FESCO  work  should  be
completed end December
1999
Commission  adoption  of
final draft end 1999
Member 
and
State 
industry  consultation  first
quarter 2000
Industry ‘Forum Group’ to
complete  work  by  March
2000
Preliminary 
available 
first quarter 2000
Preliminary 
available 
December 1999
Industry ‘Forum Group’ to
complete 
by
February 2000

Work  continuing  in  close  co-
operation  with  FESCO  and  the
industry (‘Forum Group’)

Work  continuing  in  close  co-
operation  with  FESCO  and  the
industry (‘Forum Group’)

Proposal  by
end 2000
Adoption:
2003

Publish
Green
Paper:  mid-
2000

Directive 
market manipulation.

Green 
Paper 
upgrading the ISD

results
from  FESCO

results
from  FESCO

address

work 

(cid:2)

(cid:2)

to 

on

6

Towards a single set of financial statements for listed companies:

fair 

Action
Amend  the  4th  and  7th
Company  Law  Directives
value
allow 
to 
accounting
Commission
Communication  updating
accounting
the 
strategy

EU 

Timeframe
Proposal
autumn-99
Adoption:
2001
For issue by
end-99
(now
deferred
into  the  first
half of 2000)

of 

Modernisation 
the
accounting  provisions  of
the  4th  and  7th  Company
Law Directives

Proposal
end-2000
Adoption:
2002

Commission
Recommendation  on  EU
auditing practices

For issue by
end-99

State of Play

Assessment

The  draft  proposal 
is  being
prepared  for  adoption  by  the
Commission.

in 

addition, 

The  proposal  has  now  been
deferred until the first quarter of
policy
Following 
2000. 
discussions  in  the  FSPG  and
the  Contact  Committee,  an
outline  for  the  Communication
will  be  discussed  with  Member
States  end  October 
the
Accounting Contact Committee.
In 
bi-lateral
discussions  are  being  pursued
with Member States.
Progress  is  linked  to  progress
on 
to
the  Communication 
update 
the  EU  Accounting
Strategy  (see  above)  and  is
therefore on target.
Following  discussions  in  two
meetings  of  the  Committee  on
draft
Auditing 
recommendation 
been
prepared  for  Member  States  in
the 
Contact
Committee.

Accounting 

has 

a 

(cid:2)

(cid:2)

(cid:2)

(cid:2)

Follow-up
by 

Adoption 
the
Commission by the end of
1999

Discussion  of  an  outline
of a Communication in the
Contact
Accounting 
21/22
Committee 
the
October, 
Accounting 
Advisory
Forum on 23 November

on 
and 

in 

Discussion 
Accounting 
Committee early 2000

the
Contact

in 

the
Discussion 
Contact
Accounting 
(21/22
Committee 
October) 
the
Committee  on  Auditing
(6/7 December )

and 

Assessment

Follow-up

(cid:2)

(cid:2)

November:
interpretation  meeting
MS experts

Implementation 
11.12.1999

date:

Discussions 
industry 
Group’) 
October 1999

with
(‘Forum
started

Containing systemic risk in securities settlement:

Action

Implementation of the
Settlement Finality
Directive

Directive on cross-border
use of collateral.

Timeframe
Commission
to continue
monitoring
of
implementat
ion in a
working
Group.
Commission
report to
Council end
2002
Launch
consultation
autumn-99:
proposal
end-2000.
Adoption:
2003

State of Play
Transposition of the Directive
already completed in: BE, IR,
NL done

Preparation within the
Commission of preliminary
discussions with industry
(‘Forum Group’), also taking
into account the ‘Giovanni
Group’ Report on EU Repo
Markets

7

Towards a secure and transparent environment for cross-border restructuring:

Action
Political agreement of the
proposed  directive  on
Take Over Bids
Political agreement on the
European 
Company
Statute
Review  of  EU  corporate
governance practices

Amend  the  10th  Company
Law Directive

Timeframe
Mid-99
Adoption:
2000
Mid-1999
Adoption:
2000
Launch
review  early
2000
Proposal 
autumn
1999
Adoption:
2002

in

State of Play
Final adoption  awaiting  political
agreement  on 
issue  of
Gibraltar
No further progress

the 

A  terms  of  reference  for  the
proposed  study 
is  currently
being drafted.
Awaiting political  agreement  on
the ECS

Company 

14th 
Directive

Law

Proposal 
autumn
1999
Adoption:
2002

in

Awaiting political  agreement  on
the ECS

Assessment

ϑϑϑϑ
ϑϑϑϑ
(cid:2)

ϑϑϑϑ

ϑϑϑϑ

Follow-up
Final adoption expected
before the end of 1999

No  progress  expected
before the end of 1999

Issue of terms of tender
for  a  study  by  end  of
1999
Commission 
led
meeting  of  Member
law
State 
company 
experts 
on
30 September/
1 October
led
Commission 
meeting  of  Member
law
State 
company 
experts 
on
30 September/
1 October

A Single Market which works for investors:

Action

Commission
Communication 
on
Funded pension Schemes
Political agreement on the
proposed  directives  on
UCITS

Timeframe
Issued 
on
11 May 1999
Com (99)134
End-1999
Adoption:
2000

on 

Directive 
the
prudential  supervision  of
pension funds

Proposal:
Mid 2000
Adoption:
2002

State of Play

Assessment

Follow-up

(cid:1)

(cid:2)

(cid:2)

Negotiations  continue 
the
Council.  EP  will  start  its  first
reading

in 

The  Commission  is  finalising  a
first  draft  text  of  a  directive  for
discussion  with  member  states
experts.  The  FSPG  discussed
the outline of a draft directive at
its October meeting

Political 
agreement
should  be  reached  end
1999.  First  reading  in
EP end 1999
First  discussion  of  a
draft  outline  of 
the
directive  with  Member
States 
on
25 November 1999:

experts 

Early  2000:  discussion
with MS experts on draft
Directive (2nd draft)

8

STRATEGIC OBJECTIVE 2: OPEN AND SECURE RETAIL MARKETS

Timeframe

End  99
Adoption 2000

State of Play
Amended proposal adopted by the
Commission (COM(1999) 385 of
23 July 1999)

Discussions with industry (‘Forum
Group’) in preparation

Assessment

Follow-up

discussions 

Technical 
are
underway  in the Council,  with  a
view  to  achieving  a  common
position by November 1999.

Meeting with industry (‘Forum
Group’) started October 1999

(cid:2)

(cid:2)

Action

Political agreement on
proposal for a directive on the
distance selling of financial
services

Commission
communication codifying
clear and comprehensible
information for purchasers

Recommendation to
support best practice in
respect of information
provision (mortgage credit).
Commission report on
substantive differences
between national
arrangements relating to
consumer-business
transactions.

on 

Interpretative
Communication 
the
freedom to provide services
and  the  general  good  in
insurance
Proposal for amendment of
Insurance 
Intermediaries
Directive

Review of
market
practices to
begin end
99:
Communica
-tion: mid
2000
For issue by
end-99

Review to
begin
autumn
1999:
status report
- mid-2000:
Discussions
with
Council, EP
to begin
end-2000.
For 
by: 
1999

issue
end

Proposal
mid-2000
Adoption:
2002

Commission
Communication on a single
market for payments
Commission Action Plan to
prevent fraud and
counterfeiting in payment
systems
Commission green paper
on an e-commerce policy
for financial services

For issue
summer
1999
Communica
tion for
issue by:
end-1999
For issue
by: mid-
2000

Dialogue was interrupted: the

Commission is seeking to restart ϑϑϑϑ

* Recommendation end 1999

Discussions with industry
(‘Forum Group’) in preparation

minor 

All  services  have  agreed  draft.
Some 
translation
corrections  to  be  made,  but
otherwise on  track for  adoption
by Commission in end 1999.
Draft  proposal  for  a  Directive
has  been  prepared  and  has
been  discussed  by  Member
State experts in September.

Communication  to  be  adopted
by the Commission  end 1999

Draft 
preparation

Communication 

in

Discussion  on  policy  outline
in
continuing 
October

the  FSPG 

in 

(cid:2)

(cid:2)

(cid:2)

ϑϑϑϑ
ϑϑϑϑ

(cid:2)

Meeting with industry (‘Forum
Group’) started October 1999
Market consultation beginning
2000
Draft 
report
consultantcy 
autumn 2000: for examination
with MS

Commission 
imminent

adoption

industry 

Meetings with Member States
experts, 
and
consumers will continue in the
2nd semester  of  1999.  The  IC
will  be  consulted  beginning
2000. Proposal for a directive:
summer 2000

Informal  consultation  of  the
in
market  will 
November

take  place 

A 
first  draft  Green  Paper
available end Nov.; interested
parties will be consulted

9

STRATEGIC OBJECTIVE 3: STATE-OF-THE-ART PRUDENTIAL RULES AND

Action
the 

Adopt 
proposed
directive  on  the  winding-
up  and 
liquidation  of
insurance undertakings

the 

Adopt 
proposed
directive  on  the  winding-
up  and 
liquidation  of
banks

proposal  for
Electronic  Money

Adopt    the
an 
directive

Amendment of the money
laundering directive

on
financial

Commission
Recommendation 
disclosure  of 
instruments
the  directives
Amend 
governing 
capital
framework  for  banks  and
investment firms

the 

Timeframe
first
New 
reading 
in
EP
beginning
2000.
Political
agreement
as  soon  as
possible.
Adoption:
2001
Common
position:
end-99
Adoption:
2001
Common
position:
autumn 99
Adoption:
2000
Commission
adopted  on
14.7.99
Adoption:
2001
Communica
tion 
mid
1999

Proposal  for
directive:
2001,
pending
develop-
ments 
Basle
Adoption:
2002

in

SUPERVISION

State of Play
Work  in  Council  working  group
progressing  steadily  but  slowly
due to technical issues.
Finnish  presidency  very  co-
operative.  A  Council  working
group  meeting  took  place  on
23/24  September  and  other
meetings  has  been  scheduled
for  October and November.

Assessment

(cid:2)

Follow-up
An  amended  proposal
will  be  adopted  by  the
Commission as soon as
the  evolution  of  the  file
in  Council  makes  this
appropriate  (most  likely
in november/december)

The  Finnish  presidency  will  re-
open discussions in the Council
working group.

ϑϑϑϑ

Awaiting  breaking  of
deadlock  in  Council  on
the ‘Gibraltar’ issue.

is
The  Finnish  presidency 
seeking  a  common  position  in
the 
of
ECOFIN  Council 
8 November

July 

Commission  proposal  adopted
on 
1999
14 
(COM(1999)352).
A  first  exchange  of  views  took
place in EP in September.
Adoption  by  the  Commission
scheduled for end 1999.

Discussions  in  the  BAC  have
been  completed  with  a  view  to
agreeing on relevant issues and
possible  policy  options.  The
rules  on
impact  of  new 
securities 
being
is 
firms 
examined.

(cid:2)

(cid:2)

(cid:2)

(cid:2)

(cid:2)

Second  reading  in  EP
and  likely  adoption  of
the  proposal  in  the  first
quarter of 2000.

The  Finnish  presidency
has  scheduled  at  least
2 
group
meetings before end ‘99

working 

the 
towards 

Commission
A 
paper
consultation 
to 
the
available 
November.
industry: 
The 
the
results  of 
consultation  will  help
EU
determine 
position 
the
proposals  of  the  G-10
Basel Committee
The IC will be consulted
on 
of
technical  discussions  in
spring 
The
Commission  will  draw
its 
from
conclusions 
these  discussions  and
adopt 
its  proposal
mid 2000

results 

2000. 

the 

Amend 
the 
margin  requirements 
the insurance directives

solvency
in

Proposal  for
directive:
mid  2000
Adoption:
2003

Additional 
technical  meetings
held  on  17/6  and  5/7  with
follow-up meeting scheduled for
15  Nov.  Work  programme  is
proceeding satisfactorily.

10

 
 
Action
Proposal  to  amend  the
insurance  directives  and
permit
the 
ISD 
exchange
information 
with third countries

to 

Timeframe
Proposal
autumn
1999
Adoption:
2001

Development  of
prudential rules for
financial conglomerates
following the
recommendations of the
‘Joint Forum’

Creation  of  a  Securities
Committee

Proposal:
end- 2000
Adoption:
2002

Proposal
end 2000
Adoption:
2002

Assessment

(cid:2)

(cid:2)

(cid:2)

Follow-up
of 

in 

Adoption 
a
Commission proposal is
scheduled for end 1999.
a
Discussions 
Council  working  group:
November
Recommendations
technical
the 
from 
group will be discussed
in  the  BAC,  HLSS  and
IC.  The  Commission
will  draw  conclusions
those
from 
deliberations
The Commission will
define the structure and
content of a proposal
for a directive

State of Play
procedure 

Internal 
Commission proposal underway

for

The  Commission’s 
regulatory
committees  (BAC, HLSS  and IC)
reached  agreement  on  a  work
mandate  for  a  technical  group  of
experts.  The  first  meeting  of  the
group 
for  end
is  scheduled 
November

consequences 

The  Commission  is  considering
the
the 
comitology
Council’s 
decision of July 1999

new 

of 

11

GENERAL OBJECTIVE: WIDER CONDITIONS FOR AN OPTIMAL
SINGLE FINANCIAL MARKET

Action
Adopt  a  Directive  on  the
minimum 
of
savings income

taxation 

the
Implementation  of 
December  1997  Code  of
Conduct  on  business
taxation

taxation  of
Review  of 
financial service products

proposals
Commission 
for  co-ordination  of  the
tax 
arrangements
governing  supplementary
pensions

Timeframe
Political
agreement
by
November
1999
Adoption:
2000
Ongoing
examination
in  the  Code
of  Conduct
group
Discussions
in 
Tax
Policy
Group
Proposal
2000
Adoption:
2002/3

State of Play
Work  in  Council  is  progressing
steadily. 
Finnish
The 
presidency is seeking progress.

Work  on  the  Code  of  Conduct
Group 
as
is 
scheduled.

progressing 

A  preliminary  analysis  and
discussions have started.

Technical  discussions  have
taken place with Member States
in  a technical  sub  group  of  the
Taxation Policy Group.

Assessment

Follow-up

(cid:2)

(cid:2)

(cid:2)

(cid:2)

A  final  report  will  be
the  ECOFIN
sent 
to 
Council 
in
November 1999.

Discussions 
continue in 2000.

will

A  draft  proposal 
under preparation

is

12