15 November 2001

EP adopted Regulation on Cross-border Payments (1st reading)

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The EP approved with amendments the report by Mrs Karla Peijs . The amendments adopted by the Parliament, which were of a technical nature, call for a short delay in the application of the Regulation, in order to allow banks to concentrate on the introduction of the euro coins and notes. It therefore proposes the date of 1 March 2002 at the latest for electronic payments and 1 March 2003 for credit transfers. Member States should ensure that there are adequate and effective procedures for lodging complaints or appeals for settling disputes between the originator and his institution or between the beneficiary and his institution. Furthermore, it is stipulated that no later than 1 January 2004, the Commission shall examine and report to the European Parliament and the Council on the functioning of this Regulation, proposing any amendments if appropriate.
See also Commission press release

The ECB remains committed to the ultimate purpose of a fully integrated single payment area for the euro. It would, however, favor allowing banks a longer, albeit definite time limit, to adjust their prices progressively in line with the progressive decrease of their cost base. The ECB expects that a substantial fee reduction for cross-border payments should already take place from 01/01/02. A fully integrated payment area should follow in a second step within a timeframe as short as realistically possible allowing for the necessary structural adjustments. For credit transfers, banks need additional time, for example until 2005, to put in place the infrastructure and logistics to allow for an economically viable equalization of prices between domestic and cross-border transfers.

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