WRITTEN QUESTION E-2738/99 by Stefano Zappalà (PPE-DE) and Antonio Tajani (PPE-DE) to the Commission. Credit institutions.
Date: 2000-01-18
Institutions: European Parliament, Provisional data
Subjects: EU competence, EU policy, European Commission, Italy, Latium, credit policy

C 280 E/120

Official Journal of the European Communities

EN

3.10.2000

(2000/C 280 E/127)

WRITTEN QUESTION E-2738/99

by Stefano Zappal(cid:224) (PPE-DE) and Antonio Tajani (PPE-DE) to the Commission

Subject: Credit institutions

(18 January 2000)

It would appear that credit institutions in Italy apply different interest rates within regions that are
homogeneous and, moreover, that in the province of Latina (Lazio), despite deposits of thousands of
billions of lire over several decades, the credit institutions have not invested in the region. Also, despite the
inadequate levels of private investment and employment in the province, the banks are suspending loans
and credits and demanding their immediate repayment thereby causing small- and medium-sized busi-
nesses to close down for good. The banks(cid:146) exposure in the business sector only accounts for a few
percentage points of the deposits held in the region.

Can the Commission say:

1. Whether it considers that it should encourage the Italian government and the European and Italian

banking system to look into the above matter;

2. Whether it considers that

for example through the
it should take steps in order to ensure,
consolidation of the exposure and the lifting of credit restrictions, that the small- and medium-sized
business sector is revitalised in a region (province of Latina) which, furthermore, when considered in
isolation, is in a state of economic crisis?

Answer given by Mr Bolkestein on behalf of the Commission

(25 February 2000)

As the Honourable Members are aware, under the EC Treaty and in particular Article 4 (former Article 3a)
thereof provides for a Community economic policy based on the internal market and conducted in
accordance with the principles of an open market economy with free competition.

By proposing and implementing measures to achieve the single market in banking services, and more
generally financial services, both the Commission and the Community keep to this principle first because it
is laid down by a higher-ranking legal provision and second because they are convinced that only an open
market economy and free competition allow the best allocation of economic resources. With the
introduction of the euro, this policy approach provides a unique opportunity for the Community to
equip itself with a modern financial structure thereby reducing the cost of capital and financial
intermediation to a minimum. Users of financial services, be they firms or individuals, will reap significant
advantages and investment and employment Community-wide will be stimulated.

financial services throughout

On the basis of these premisses, Community legislation and other measures establish the legal framework
for the free movement of
the Community and seek to ensure that
competition is not distorted and that the single market produces a sound prudential situation and
unquestionable stability. These principles have recently been reaffirmed by the Commission in its
communication Implementing the framework for financial markets: Action plan (1) adopted on 26 May
1999. It was transmitted to Parliament and the Council the same day and confirmed by the Cologne
European Council.

Within this established framework, it is for each credit establishment to define its own commercial and
investment policy on the basis of its assessment of the market and the risks that go with it. The
Commission feels that, quite apart from being legally questionable, public intervention designed to impose
choices on the financial market would be an obstacle to the free movement of financial services and
would, in the long term, be harmful to both firms and consumers, with a negative impact on development
and employment.

(1) COM(99) 232 final.