It announced its publication of a consultation paper yesterday
as a step towards creating a Single Payment Area in the EU where,
according to its latest figures, 143 million non-cash transactions
take place every day, an average of 138 transactions per year per
inhabitant.
The Commission acknowledges that rules protecting payment
service users, providers and systems need to be clear and simple
across the Internal Market.
Its document reflects discussions already held with Member
States, central banks, the payment industry and consumer
associations. It includes suggestions for future EU legislation
which would constitute a "new legal framework" for payments in the
Internal Market.
Responses are invited by 31 January 2004.
Internal Market Commissioner Frits Bolkestein said:
"A Single Payments Area will mean lower
costs for payments, an end to unnecessary delays and much greater
certainty over security and legal responsibility. It will also help
consumers and businesses to get the full benefits of the single
currency. This is not only a matter of convenience but also crucial
for the competitiveness of the EU economy.
"The EU Regulation on Cross-Border Payments
in euro has made it easier and cheaper to make many types of euro
payments within the Internal Market. But significant difficulties
remain. The Commission is determined to tackle them."
Recent moves
There have been several recent regulatory and commercial steps
bringing Europe closer to becoming a single payments area. These
include the implementation of the EU Regulation on Cross-Border
Payments in euro, which has brought the cost of cross-border card
transactions, electronic cash withdrawals and bank transfers in
euro into line with the cost of national transactions.
The Regulation has triggered the payment industry to speed up
its work to modernise the cross-border payment infrastructure. A
major step in this direction was the establishment in June 2002 of
a European Payment Council by banks.
Problems
But EU payment markets are still fragmented. This can discourage
cross-border transactions, hinder trade between EU countries and
prevent individuals who live in one Member State from ordering
goods and services from another or from using the Internet to buy
products at the best prices.
What's more, a recent Commission survey showed that consumer
confidence in electronic payments needs to be enhanced, especially
in certain Member States.
The Commission's consultation document invites comments on
whether existing and new EU laws are necessary. It analyses what
form such legislation might take, while emphasising that
legislation should only be used where it genuinely adds value.
