Opinion of the European Economic and Social Committee on the White Paper on Financial Services Policy 2005-2010 COM(2005) 629 final
Date: 2006-07-05
Institutions: European Economic and Social Committee
Subjects: approximation of laws, consumer information, consumer protection, financial cooperation, financial institution, financial legislation, financial market, free movement of capital

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5.2.1
The Commission's powers are therefore fairly broad
and include the right to determine, itself (second indent), the
cases in which, and conditions under which, Member States
may be required to revoke or amend a decision. The EESC
notes that while,
in the cases covered by the first and third
indents, the Commission is performing its institutional role of
coordinating and implementing decisions adopted or endorsed
by the Council, in the case of the second indent it is exercising
power in an anomalous way, even though, all things consid-
ered, this may be justified by circumstances and the EESC is
certainly not opposed to it.

5.2.2
On a general note, the EESC points out that the deci-
sion to carry out controls on operations of all kinds effected by
the public — including commercial transactions and customs
work — will affect free trade, and that it derives from political
decisions, endorsed by the EU and the Member States within
their different remits. The Commission, of course, implements
these decisions.

The EESC hopes that the customs reform will not
5.2.3
upset the necessary balance between free trade and users' and
end-consumers' safety and security, and that it will be carried
out with due respect for the professionalism of customs staff
and importers/exporters' employees.

Brussels, 5 July 2006.

The President

of the European Economic and Social Committee

Anne-Marie SIGMUND

Opinion of the European Economic and Social Committee on the White Paper on Financial
Services Policy 2005-2010

COM(2005) 629 final

(2006/C 309/06)

On 1 December 2005 the Commission decided to consult the European Economic and Social Committee,
under Article 262 of the Treaty establishing the European Community, on the White Paper on Financial
Services Policy 2005-2010

The Section for the Single Market, Production and Consumption, which was responsible for preparing the
Committee's work on the subject, adopted its opinion on 31 May 2006. The rapporteur was Mr Iozia.

At its 428th plenary session, held on 5 and 6 July 2006 (meeting of 5 July), the European Economic and
Social Committee adopted the following opinion by 152 votes to one with nine abstentions.

1. Conclusions and proposals

1.1
The EESC supports the Commission's proposal to devote
the next five years to the dynamic consolidation of the financial
services industry by implementing and strengthening current
legislation and by simultaneously avoiding excessive regulatory
additions (so-called gold-plating), while respecting the spirit of
the Lisbon Strategy and the features of the European social
model.

would be useful to recommend that European authorities iden-
tify a main supervisory authority, the one situated in the
(home) country of the parent company, which would also be
entrusted with the task of supervising the activities of subsidi-
aries and controlled companies situated in other EU Member
States. The advantages that would be gained by European-scale
companies and consumers are obvious.

1.2
It is essential, not least in the opinion of the EESC, that
the role and activities of supervisory authorities be enhanced,
thereby optimising coordination as provided for
level-3
committees under the Lamfalussy process.

1.2.1
The EESC believes that it would be premature at this
point to establish a single EU supervisory authority that
could, in future, promote market integration, but considers it

The growing importance of financial activities in the
1.3
economy (often referred to as the financialisation of
the
economy) is underpinned by the improved efficiency of finan-
cial transactions. Although the financialisation of the economy
is reflected in a significant capacity for economic and job
growth in the financial sector, it can also adversely affect the
whole economy. The power of stock markets focused on share-
holder value can also thwart industrial strategies. Commercial

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and financial pressures can lead to problems in the long term
and, as is the case at the moment, lead to unplanned takeover
bids, a large percentage of which have led to the destruction of
value in the short term.

1.3.1
It must be remembered however that, at least in the
short- to medium-term, in the wake of consolidation, there are
fewer jobs in the financial
industry, which gives rise to
growing insecurity among the workforce. The EESC stresses
the need to take account of the social consequences of consoli-
dation and hopes that the Member States would adopt appro-
priate social shock absorbers and support professional
training and retraining schemes, which are vital in achieving
the objectives of the Lisbon strategy.

1.4
The EESC endorses the objectives of simplification, codi-
fication and a commitment towards clarification with a view to
achieving ‘better regulation’ and to this end warmly welcomes
to frequent and
the Commission's continued commitment
open consultation with all stakeholders, and to carrying out
impact assessments prior to every new proposal,
including
the social and environmental dimensions and external
factors impacting on the whole economic system.

1.4.1
The EESC calls for work on the FSAP to be given a
higher profile and to be more widely debated, not exclusively
by experts.

1.5
The EESC welcomes the Commission's proposal to issue
a Communication/Recommendation on UCITS, with a view to
overcoming current obstacles to the free circulation of these
financial instruments.

on consumer credit, which should be approved as soon as
possible, and on the directive on payments services, for which
it is drawing up a separate opinion. With regard to the directive
on mortgage credit, however, the EESC, though supporting the
objectives, has expressed well-grounded concerns about the
feasibility of early integration of the credits market. Lastly, as
regards clearing and settlement arrangements, the EESC would
warmly welcome the adoption of a framework directive.

The Commission has expressed doubts on adopting the
1.9
so-called ‘26th regime’
in the area of financial services. The
EESC takes note of this and declares that it is willing to assess
— once they have been laid down — the conditions for effec-
tive application, which must always protect the interests of
consumers and provide them with genuine value.

1.10 With regard to future initiatives, the EESC has shown:

— the usefulness of action in the area of UCITS, which aims
to bring the regulatory standards of unit-linked policies into
line with the other financial products;

— the importance of ensuring access to a bank account;

— the need to remove obstacles to the mobility of cross-

border bank accounts.

1.11
The EESC is convinced that European standards regu-
lating financial services are of a very high quality and that the
EU can look forward to becoming a point of reference for all
the other countries. Europe should open up a dialogue with
both newly-industrialised countries (such as India, Brazil and
China), as the Commission is suggesting, and less developed
countries that need substantial assistance to develop their finan-
cial services markets.

1.6
It is essential to strengthen consumer information, finan-
cial culture and awareness. The Commission's intention, there-
fore,
to launch specific initiatives with European consumer
associations, is welcome, but the Commission should deal more
in order that they can be
actively with the Member States,
persuaded to establish more robust ways of involving stake-
holders at national level. The EESC is happy to contribute to
these initiatives by working in tandem with consumer associa-
tions and national ESCs.

1.12
The EESC supports all European and national institu-
tions in their fight against crime and terrorism. Here again, in
line with the Commission's emphasis on the need for the finan-
cial system to provide full and ongoing cooperation with the
competent authorities, the EESC supports and reiterates this
call to both the financial institutions and the competent autho-
rities who ought to inform the financial intermediaries of the
follow-up given to the information provided.

to comply with requirements

Current supervisory rules, which differ across Member
1.7
in
force companies
States,
connection with drawing up balance sheets and providing
company information. Adoption of the IFRS could represent
the ideal opportunity to standardise these information require-
ments at EU level. The EESC notes that the IASB, a privately-
funded international standards body does not fully reflect the
present world economic situation and hopes that it will be
willing to cooperate internationally with other bodies,
for
example the European Commission.

1.8 With regard to the directives on the retail market, the
EESC reserves the right to comment specifically on the directive

2. Background

The White Paper on Financial Services Policy 2005-
2.1
2010 sets out several objectives aimed at the dynamic consoli-
dation of the financial services industry, recognising that an
efficient financial market is the cornerstone of an economic
growth and development strategy. Dynamic consolidation is the
the White Paper, which sets the objective of
leitmotiv of
removing the remaining barriers to the free circulation of finan-
cial
significant
progress already made by the 1999-2005 FSAP.

and capital, notwithstanding the

services

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2.2
The key role of regulation for the functioning of finan-
cial markets warrants the focus and emphasis given by the
White Paper to the need to implement and strengthen existing
legislation, and at the same time avoids excessive regula-
tory additions (so-called gold-plating), particularly by Member
States.

2.3
Analysis of the legal framework must include consid-
eration of the limits, remit and coordination responsibil-
ities of supervisory authorities within the EU. While in the
current climate, maintaining a national approach to supervision
form of consumer and investor
may still remain the best
protection,
is important to recognise the two significant
it
problems inherent to this approach.

concealing the fact
that business plans presented during
mergers and acquisitions focus mainly on cost savings achieved
by lowering labour costs. While in the short term, consolida-
tion may lead to a net loss of jobs, it should also be recog-
nised, however, that it provides room for the develop-
ment of innovative services and areas of activity, which
will in turn have a positive impact on employment. By
lowering the barriers which hinder financial service providers
from fully exploiting the synergies of cross-border mergers,
banks would be able to provide their services at a lower cost,
which would ensure that pricing policies were more attractive
to customers and, consequently, boost demand. As a result,
intermediaries would step up investment, which
financial
would have positive repercussions, not
in terms of
employment. These new jobs, with certain exceptions, such as
call centre and back office functions, generally attract more
highly qualified and better-paid professional profiles.

least

Not

supranational

integrating supervision at

2.3.1
level
substantially limits market integration. It is therefore necessary
to promote and strengthen close cooperation between
Member State authorities. Risk management in the major
European banks with operations in several Member States, is
implemented at group level on a consolidated basis. The super-
visory authorities must be in a position to accurately assess the
risk profile of these major European groups.

2.3.2
The retention of a substantial national-level element in
supervision must not provide an opportunity for raising those
barriers against dynamic consolidation at EU level whose gradual
removal is called for by the White Paper.

3. General comments

3.1
In a recent opinion, the EESC set out its views on the
Green Paper on Financial Services Policy (2005-2010). As the
White Paper incorporates many of the proposals set out there,
the EESC reiterates views already put forward and will briefly
recapitulate them in this opinion (1).

The White Paper highlights

3.1.1
the economic and
employment growth potential of the financial services
industry. The Committee believes, however, that this central
premise of the document must be considered carefully and
realistically, in light of various well-documented facts.

3.4 While accepting, therefore, that industry consolidation
does not have an overall negative effect on employment, the
EESC firmly stresses that the gap in terms of both time and
different professional qualifications that exists between
the loss and creation of new jobs cannot be ignored. At a
time when the emphasis is shifting from job protection to
employment possibilities, Member States should give priority to
supporting professional training and retraining schemes, as well
as providing an appropriate system of social shock absorbers.

3.5
If workers see that they can readily put their qualifica-
tions and skills to use, even in a rapidly changing economy,
they will be less reluctant to accept the decreased job stability
entailed by the dynamic consolidation of the industry. This obser-
vation should prompt recognition of professional training as
not only an instrument for containing social instability,
but also as a vital factor in the long-term success of the
dynamic consolidation plan and, more generally, of the
Lisbon Strategy, which aims to transform the European
economy into the most
knowledge-based
economy in the world. Moreover, an appropriate social
network which would contribute to mitigate the often serious
effects of these stages of transition needs to be created.

important

The industry consolidation process can lead to greater
3.2
efficiency and economies of scale, which can ultimately benefit
shareholders of intermediaries' risk capital (through increased
return on invested capital) and financial services users (through
a reduction in the cost of those services).

4. Specific comments

4.1 Better regulation

At

the

same

3.3
substantial empirical
time, however,
evidence points to reduced employment in the financial
industry following consolidation, which gives rise to
growing insecurity among the workforce. There is no

(1) OJ C 65 of 17.3.2006.

4.1.1
The three guiding principles on the road to better
regulation are identified as simplification, codification and
clarification. It is important to move in this direction in order
to ensure legal consistency, simplified application and uniform
implementation.

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regulation,

in particular its continued commitment

The EESC welcomes the Commission's proposals on
4.1.2
to
better
frequent and open consultation with all stakeholders, its
commitment to carrying out impact assessments for every
new proposal, centring on economic costs and benefits in the
broad sense, including the social and environmental dimen-
together with the Council and the
sions. A commitment,
Parliament,
legislation and the
external factors impacting on the whole economic system is
equally important.

to improve the quality of

4.1.3
The EESC shares the Commission's view of the chal-
lenge of ensuring that EU legislation is both properly imple-
mented on time and that it is subsequently properly applied by
the 25 Member States, with further enlargements in the pipe-
line. The Committee also concurs with the need to curb gold-
plating, i.e. unilaterally adopting additional regulations that go
against the principle of the single market. In fact, the unjustifi-
able variety of national consumer protection regulations is
one of the principal obstacles to the integration of finan-
cial services across the EU.

4.1.4
The EESC also stresses the fundamental importance of
ex-post evaluations of whether the rules actually achieve their
objectives and, at least for the sectors covered by the so-called
Lamfalussy process, of whether markets evolve in line with the
expectations it contains.

4.1.5
Ensuring consistency between EU and national legisla-
tion must begin with the most significant sectors or where
there are the greatest harmonisation and legal consolidation
difficulties, as
in the case of UCITS distribution and
marketing. Increased competition and efficiency in this sector
inevitably brings about greater scope for distribution and
marketing, which are still greatly hindered by an ill-defined
legal
the
Commission's proposal to issue a communication/recommen-
dation in the course of 2006 and a white paper on asset
management in November.

therefore particularly welcome

framework. We

4.1.6
The Commission will propose to incorporate 16
existing insurance directives into a single directive. The
EESC supports this codification proposal and considers it an
excellent example, which should also be followed in other
areas, by adopting legislation aimed at bringing together,
simplifying and streamlining all of the issues covered by the
various directives.

The EESC also endorses the use of

4.1.7
infringement
proceedings where any incorrect implementation or applica-
tion of Community law is found, but must point out that, in
recent times, the Commission has been greatly influenced by
the Council and has been increasingly reluctant to go down
this road.

is,

4.1.8
the retail
The improvement and rationalisation of
financial services industry must not overlook the issue of
consumer information, education and awareness — these
factors are essential to the maximum effectiveness of any legal
framework. The EESC strongly backs the Commission's inten-
tion, therefore,
to launch specific initiatives at EU level
with consumer associations and financial industry repre-
sentatives, but feels that the Commission should make greater
efforts to ensure that at national level such practices are highly
if not mandatory. The EU consumer news-
recommended,
letter,
in theory, an excellent initiative. The Commission
must be aware, however, that information tools must have an
element of proximity to the consumer. The EESC calls on the
Commission to work with the Council and the Parliament, to
ensure that more robust ways of involving stakeholders at
national level are examined, based along the lines of what it
envisages at EU level. Developing FIN-NET, a tool
is
currently unknown to the vast majority of consumers, is a step
in the right direction. In connection with the review of the role
of
the EESC recommends involving both
consumer and civil society organisations and the social players,
and could itself support the initiative by, for example, working
in tandem with national consumer associations and ESCs.

this instrument,

that

4.1.9
The EESC believes that at a time when the Commis-
sion is stressing the importance of circulating information,
particularly among consumers, investors and financial industry
employees, the issue of the language in which documents
are available must not be underestimated. The Commission
needs to focus on this issue, sparing no effort in ensuring that
the essential documents at
least are available in as many
languages as possible.

4.1.10
The EESC welcomes the attention given to consu-
mers and to bank and financial services staff and to their
regular consultation on major issues. The added value of
market
integration lies in consumer satisfaction, while due
attention must be paid to the social impact of decisions taken.
Nevertheless, previous financial directives have not always
taken this approach. The observations put
forward in the
General comments section of this opinion are intended to firmly
stress this perspective.

financial services and is pleased that

4.1.11 With regard to interaction with other areas of EU
economic policy, the EESC has already highlighted that, for
the major European groups (2), the VAT system can hinder the
strengthening of
the
in this
Commission intends to present a legislative proposal
regard. Particular attention needs to be given to assessing the
economic, social and environmental impact of the desired VAT
harmonisation process. The EESC has also shown how the
current situation could hinder the complete integration and full
development of the financial market. Furthermore, the EESC

(2) OJ C 65 of 17.3.2006.

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highlights the case of outsourcing, which could be greatly
incentivised by a non-harmonised taxation system, with
negative effects on employment, on the quality of services and
on the reliability of the whole system. The EESC hopes that this
subject will be given careful consideration, given that various
instances of outsourcing have had less than ideal results.

ring or delaying the achievement of this objective, which is a
pre-requisite for efficient and effective supervisory coordination
and cooperation at EU level. Nevertheless,
these should be
brought into line with the corresponding objectives of the EU
Solvency II project. Those companies which have not yet
harmonised their balance sheets and consolidated balance
sheets with the IFRS should not however be at a disadvantage
compared with companies that are obliged to do so.

4.2 Ensuring the right regulatory and supervisory structures

4.2.1
The objective of increased coordination of market
supervisory authorities is clearly one we would share. This
objective could be facilitated by giving an increasingly deci-
sive role to level-3 committees, and harmonising the respon-
sibilities of their members under the Lamfalussy process, as
part of the completion of the EU legal framework. This would
result in both an easing of the Commission's workload and a
decreased risk of goldplating by Member States or supervisory
authorities.

4.2.2
The EESC believes that it would be premature at this
point to consider establishing a single EU supervisory authority
which would be responsible for coordinating supervisory activ-
ities. Nonetheless, the Committee believes that national supervi-
sory authorities must engage in active and continuous coopera-
tion, and work towards establishing common codes of
conduct and standard procedures. The ensuing increase in
mutual trust would represent a first step on the road to the
future establishment of an EU supervisory authority for the
major financial, banking and insurance groups operating in
various Member States. One of the first important decisions to
be made should be to identify a main supervisory authority
situated in the country hosting the parent company, which
would be responsible for supervising subsidiaries and controlled
companies situated in other European states. Multinationals
and supervisory authorities could effectively benefit from the
single market, by not having to repeatedly present balance
sheets and information documents and by not having to take
account of different national regulations.

4.2.3
The method used, for instance, in the Market Abuse
Directive should be promoted. The presentation of a very
detailed draft directive ensured a high level of uniformity in its
subsequent
leaving a significant margin of
responsibility to regulators: this was also shared at EU level,
and specified the duties to be transferred to the remit of the
various supervisory authorities.

transposition,

4.3 Current and future legislative initiatives

4.3.1 Cu r r e nt le g i sla ti ve i ni ti a ti v e s

Retail banking is covered by three major initiatives.
4.3.1.1
the EESC (3) has already
With regard to mortgage credit,
expressed well-grounded concerns about the feasibility of inte-
grating the market, in the light of legal implications and signifi-
cant difficulties which were outlined in a recent opinion. The
EESC awaits the Commission's line of approach and replies to
the objections submitted.

4.3.1.2
The amendments to the directive on consumer
credit proposed by the Commission, currently under examina-
tion by the European Parliament,
improve the previous
proposal without fully meeting the needs of consumers. The
EESC awaits the outcome of the examination and hopes that
the directive will be approved shortly.

The payments services directive also has an
4.3.1.3
important role to play. Cross-border payments services are still
something of a grey area. The financial system must subject
itself to the competition, transparency and comparability rules
issued by DG Competition. The creation of a Single European
Payment Area (SEPA) by 2010 is an ambitious and desirable
objective that will ensure that cross-border payments are more
efficient and provide consumers with a guarantee. However, it
must be taken into consideration that efficient and low-cost
systems (such as the direct debit system) are already in place in
some Member States. When the SEPA is implemented, the
users'
interests must be taken into account and added value
provided. The EESC is currently drawing up an opinion —
specifically on payments services — in which the Committee
will set out its detailed assessment.

4.2.4
The adoption of the IFRS was an important oppor-
tunity to streamline financial reporting by business manage-
ment and bring it in line with modern standards. It could also
represent an opportunity to standardise at EU level the types
of data that intermediaries must present to their respec-
tive supervisory authorities. The EESC believes that with the
adoption of the IFRS there are no longer any grounds for defer-

(3) OJ C 65 of 17.3.2006.

The reappraisal of the notion of qualifying share-
4.3.1.4
holdings,
through the revision of Articles 16 and 15 of,
respectively, the Banking Directive and the Insurance Directive,
is a key initiative to prevent certain supervisory authorities
from hindering the balanced development of
the internal
market, using the prudential management of financial systems
as a pretext. The EESC considers that improving the efficiency
of a system, rather than limiting the transfer of control of
companies, offers the best guarantee of its stability.

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4.3.1.5
As regards clearing and settlement arrangements,
the lack of a regulatory framework has contributed to the
persistence of serious diseconomies and genuine abuses. Cross-
border settlement and clearing infrastructures are more costly
and less efficient than national ones. The EESC would warmly
welcome the issue of a framework directive with a view to
increasing the competitive capacity of European operators, not
least when competing internationally. An efficient and well-
ordered market attracts investment and Europe needs to attract
investment if it genuinely wishes to pursue the objectives of
economic and job growth.

4.3.2 T h e cu r r e nt de ba te

4.3.2.1
The EESC agrees with the Commission's assessments
following its examination of the unjustified barriers to the full
free movement of capital and cross-border
achievement of
investments.

The Commission has expressed doubts on the so-
4.3.2.2
called ‘26th regime’ in the area of financial services. On the
other hand, the minimum harmonisation principle has created
too many differences. The ‘home country’ principle has been
liberalisation and competition
a formidable instrument of
within the EU. Indeed, the more solidly mutual trust over the
quality of internal legislation in each Member State is anchored,
the more fully this principle will be accepted by the Member.
In this regard, the goal of full harmonisation of rules is a
significant catalyst, enriching and consolidating these
trust-based relations which underpin the progressive creation
of a common culture. This should lead to the harmonisation of
the essential provisions of
financial services contracts. The
EESC would like to point out that, on the other hand, no
evidence of the (effective) applicability of the 26th regime has
been adopted so far and that the Commission should, in any
case, conduct an in-depth assessment of its application. In a
recent opinion, the EESC stated that:
‘[the] 26th regime (…)
could be a valid option only after it has been ascertained, through a
thorough study of the laws and contracts of all 25 countries, that the
“parallel” instrument does not contravene the rules and laws of any of
them. At all events, it is necessary that standardisation rules
should not hinder the supply of new products and thus
become a brake on innovation’ (4).

4.3.3 F u t u r e i n i ti a ti v e s

4.3.3.1
In its recent opinion on the Green Paper of July
2005, the EESC has shown the usefulness of action in the
area of UCITS (5).
financial
products such as unit-linked policies, perceived as comparable by
investors, despite the fact that they are governed by a very different

funds compete against

‘Investment

(4) OJ C 65 of 17.3.2006.
(5) OJ C 110 of 17.5.2006.

framework. This can distort

legal
investors' choices with negative
repercussions on cost and risk levels in the investments concerned. The
EESC believes that this problem cannot be addressed with reduced
competition or by easing the restrictions and guarantees imposed on
investment funds. We would call instead for an upward adjustment of
standards so that financial products that are perceived as being a
direct alternative to investment funds are subject to regulatory require-
ments that are comparable to those pertaining to such funds.’ The
imbalance in the requirements of funds and unit-linked policies,
the incomplete development of the European Passport due to
the obstacles that certain supervisory authorities continue to
create, the lack of transparency of costs, especially exit costs,
and market fragmentation with the associated high costs are
some of
the EESC
the problems outlined. Nevertheless,
expresses concern at the development, in some Member States,
of guaranteed capital funds without the need for the manage-
ment company to have sufficient own funds, with the result
that, in the event of particularly disadvantageous market trends,
consumers could be inadequately protected. The EESC calls on
the Commission to remedy this shortcoming, by establishing
appropriate corporate responsibility obligations for companies
issuing guaranteed capital funds and by setting a precise and
adequate level of monitoring. The EESC is particularly aware of
the pressure to achieve more efficient UCITS, not least due to
the fact that, being a significant component of pension fund
schemes, they can make a substantial contribution to resolving
a problem that was rightly pointed out at the beginning of the
White Paper,
i.e. the financing of the considerable pensions
deficit which affects most European economies.

4.3.3.2
The EESC agrees with the Commission on the
importance, which is not merely economic, of having access
In modern economies, having a bank
to a bank account.
account in practice confers a kind of economic citizenship on
individuals. In certain Member States, this citizenship right is
legally recognised,
thereby obliging the financial system to
ensure that basic banking services can be provided at minimum
cost. In other EU countries, a strong awareness of the issue is
spreading among companies, which, for a few euros a month,
offer a ‘package’ of services associated with current accounts.

4.3.3.3
The aim to remove obstacles to the mobility of
cross-border accounts is commendable and could contribute
to lowering bank charges. The possibility of opening online
bank accounts could actually bring the objective of ensuring
intra-European mobility of accounts within reach. However, it
must be remembered that not all consumers are IT-oriented.
The Commission should propose a satisfactory alternative for
these people, who usually belong to the more vulnerable
sectors of the population. It must be emphasised that only the
consolidation of effective and constructive cooperation between

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the supervisory authorities can give concrete form to this possi-
bility. Acting on proposals set out in the White Paper, on 16
May 2006 the European Commission (6) decided to entrust an
expert group with the task of assessing customer mobility in
relation to bank accounts.

4.4 The external dimension

The Commission's ambitious goal of giving Europe a
4.4.1
leading role in setting standards at global level is certainly to be
welcomed. Furthermore, in line with the recommendations of
the Doha Round, the EESC hopes that Europe will steer the
most advanced countries in a commitment to provide less
developed countries with proper technical and financial assis-
tance in regulatory and implementation issues relating to the
agreements and standards adopted. The advance of interna-
integration must also take account of the needs of
tional
investment. The
weaker economies which need to attract
EESC trusts that the Commission will bear these needs in mind

during negotiations and discussions with the other more
advanced economies.

4.4.2
The EESC supports the Commission and the other
European institutions in their fight against all kinds of criminal
activities — frequently connected with international terrorism
— and is committed to combating the criminal use of financial
systems. There are many types of economic crime: corporate
and commercial
tax evasion and
fraud, money laundering,
corruption.
funds are frequently channelled through
Illicit
financial services systems to serve criminal ends. The EESC calls
on the financial institutions to provide the best possible assis-
tance to the authorities concerned, who, on the other hand,
should take sufficient heed of their recommendations. If finan-
cial institutions are kept abreast of the follow-up given to infor-
mation supplied to the authorities in connection with suspect
transactions, they will be more motivated to continue and step
up the efforts required.

Brussels, 5 July 2006.

The President

of the European Economic and Social Committee

Anne-Marie SIGMUND

(6) Commission Decision 2006/355/EC of 16 May 2006 setting up an
expert group on customer mobility in relation to bank accounts (OJ
L 132 of 19.5.2006).