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Abstract
“Despite progress in implementing the internal market programme and the introduction of the euro, the EU still does not have a fully integrated financial market. Much has been achieved on the road towards integration, but there is more work still to do”, the Economic and Financial Committee (EFC) states in its report.
“Recent years have seen positive progress towards financial integration in the EU with the introduction of the euro and the implementation of single market legislation, including 26 measures of the Financial Services Action Plan (FSAP). However, the transformation from a patchwork of 15 national financial systems to an integrated EU financial system is not yet complete. Protectionist pressures are still at work.”
In particular, policy-makers need to:
Complete the Financial Services Action Plan (FSAP) including the adoption of 8 important legal measures this year. There is a risk that FSAP measures might be designed in a way that fails to promote the benefits of integration.
Ensure consistent implementation and enforcement of regulation. The Ecofin Council should invite the Commission, appropriately involving relevant supervisory authorities and Ministries of Finance, to suggest by September 2002 appropriate arrangements for the practical implementation of Financial Services Directives.
Enable effective competition. In fostering a process of market-led integration, public authorities should ensure sufficient levels of competition, and ensure equal market access for all domestic and foreign providers to trading, clearing, and settlement systems. Efforts to remove other distortions and obstacles to competition, such as tax discrimination against ‘cross-border suppliers’ should also be stepped up.
Enhance consumer confidence and provide consumer protection.
Measures based on increasing information on available protection mechanisms to consumers should be used as developed by the Commission and the Member States in the Roadmap for a single retail financial market.
Report on EU financial integration
© European Commission
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