EU financial plan revealed

INTERNAL Market Commissioner Charlie McCreevy launched the second phase of the plan to integrate EU financial markets yesterday with a promise of no major new legislation.

But the former Finance Minister said he will publish a green paper on asset management in July dealing with the €5 trillion business that accounts for 50% of the EU’s GDP.

Yesterday’s discussion document focuses on implementing the existing rules under the relatively successful Financial Services Action Plan introduced in 1999. The emphasis is on finding ways to ensure greater competition between all agencies in the EU involved in financial services from pension funds to retail banking.

Up to now differences such as tax and legal frameworks as well as protectionist attitudes in the member states have militated against competition.

Mr McCreevy, launching the Green Paper in Brussels yesterday, said: “Driving forward the integration of EU financial market is crucial for ratcheting up Europe’s economic growth and jobs potential.”

The commissioner said he saw his job as knocking down barriers to cross-border services. “People should be able to take out their mortgage in whatever country they get the best deal,” he said.

While the emphasis in the future would be of consolidation existing legislation, he said in a few areas new initiatives may be proposed.

A separate green paper on asset management will be published in July where he said even a small improvement in efficiency would have huge and immediate beneficial economic effects.

Other issues in the green paper, which is open for public consultation until 1 August 2005, are ensuring supervisory practices and standards converge across Europe, encouraging cross border investment and taking advantage of Europe’s opportunity to influence the emerging global financial market.

Mr McCreevy added that he hoped to widen Europe’s financial agenda with the US, Japan and China.

The final financial services policy programme will be presented in November.